All categories

3 years ago

What does compounding interest mean??

1 answer:

7 0

Compounding interest is interest on top of interest.

For example, say you put 100 bucks in the bank.
You get 10% interest compounded daily on that 100 bucks.

That means that you get 10% interest not only on those 100 bucks, but all the money you make after.

So your interest would go from 10% on 100 bucks, to 10% on 110 bucks and so forth.

I hope this helps and please press that ❤ under my reply, it really helps!

You might be interested in

Billy Longstreet bought a new car and was a bit uncertain about whether or not he had done the right thing. Two days after he pu

Nonamiya [84]

Answer:

dissonance

Explanation:

Based on the information provided within the question it can be said that this attempt seemed to be aimed at reducing dissonance. This term refers to holds two or more contradictory beliefs, ideas, or values. Which in this scenario, the salesman makes this comment in order to see if Billy was satisfied and knew that his purchase was a good one. If Billy were to decide to sell the car to one of those interested buyers then it is likely because he does not know its value.

8 0

4 years ago

The interest rate is 5% in the market for loanable funds. Investors wish to borrow $100 million and savers wish to save $125 mil

xxMikexx [17]

Answer:

D. Fall; Surplus

Explanation:

Loanable Funds

This is simply the sum total of all the money individuals in an economy or nation have decided to save and lend to borrowers as an investment rather than use for individual consumption. The market describes how money is borrowed. It illustrates the interactions between savers and borrowers in a country.

Interest rate here is determined by the demand and Supply of loanable funds. When the Savers and More than the borrowers, that is, supply is larger than demand, interest Rate generally FALLS (drops). This is as a result of the SURPLUS loanable funds available.

A good example is in the question, where the borrowers want 100million and the Savers are saving 125 million.

The Savers amount are more than the borrowers amount by 25 million, hence a fall in interest rate due to that Surplus.

4 0

3 years ago

Churchill Automobiles is a delivery truck manufacturer. It is a new company and wants to gather information on how to improve th

katovenus [111]

Answer: Option (B)

Explanation:

ISO 9000 is referred to as the set of the principle. These help an organization so as to ensure that they meet the consumers and stakeholder needs which are given within the sanctioned and administrative requirements that are related to the commodity product or the service. This deals with the essentials of quality management systems.

5 0

3 years ago

The account Work-in-Process Inventory: Group of answer choices Consists of completed goods that have not yet been sold. Consists

Rudiy27

Answer:

Consists of goods being manufactured that are incomplete.

Consists of materials to be used in the production process.

5 0

3 years ago

Read 2 more answers

Assume the spot market exchange rate for $1 is currently A$1.1904. The expected inflation rate is 3.3 percent in Australia compa

vodomira [7]

Answer: c. $1.1964

Explanation:

The Expected Rate is calculated as follows,

Expected Rate = ((1+ Australia inflation rate)/(1+ U.S inflation rate)) *spot rate

Plugging in the figures therefore we will have,

Expected Rate = ((1+0.033) / (1 + 0.028)) * 1.1904

Expected Rate = $1.1964

$1.1964 is the expected exchange rate one year from now if relative purchasing power parity exists.

6 0

3 years ago

Read 2 more answers