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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!

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Clay’s Forging at Canal Fulton wants to determine its inventory management performance during its past year of operations. Refer

Tatiana [17]

Answer:

days on inventory 57 + collection cycle 163- payment cycle 63

CCCT = 157 days

Explanation:

The cash-to-cash measures the times from the company paid his good from the time it collect from the customer:

days inventory outstanding + collection cycle - payment cycle

days inventory outstanding:

$\frac{365}{Inventory TO} = $Days on Inventory$

Where:

$\frac{COGS}{Average Inventory} = $Inventory Turnover$

where:

$$$Average Inventory=(Beginning Inventory + Ending Inventory)/2$

COGS $ 1,790,000

Beginning Inventory: $ 273,000

Ending Inventory: $ 290,000

Average Inventory: $ 281,500

$\frac{1790000}{281500} = $Inventory Turnover$

Inventory TO 6.358792185

$\frac{365}{6.35879218472469} = $Days on Inventory$

Days on Inventory 57

Collection cycle:

$\frac{Sales}{Average AP} = $AP Turnover$

where:

$$$Average AP=(Beginning AP+ Ending AP)/2$

Purchases: 1,575,000

Beginning AP: 227,500

Ending AP: 316,200

Average AP: 271,850

$\frac{1575000}{271850} = $AP Turnover$

$\frac{365}{AP TO} = $payment cycle$

AP TO 5.793636196

payment cycle 63

Collection cycle

$\frac{Sales}{Average AR} = $AR Turnover$

Sales 102,000

Average AR 45,500

$\frac{102000}{45500} = $AR Turnover$

$\frac{365}{AR TO} = $collection cycle$

AR TO 2.241758242

$\frac{365}{2.24175824175824} = $collection cycle$

collection cycle 163

5 0

3 years ago

Suppose you are planning a summer vacation and book a hotel room online for $149 a night. However, when you get to the reservati

Anettt [7]

Answer:

iii

Explanation:

Most of the time hotels will charge more when more rooms are booked, so when you book your hotel room, and many rooms are booked, most people do get charged more.

3 0

2 years ago

The situation where one person's demand for a good depends on the consumption of the good by others is called a

ehidna [41]

Answer:

Network externality is the correct answer.

Explanation:

7 0

3 years ago

The rationality assumption as used in economicsA. is widely accepted by other social science disciplines as well.B. states that

NNADVOKAT [17]

Answer:

(D) presumes that everyone can perform sound logical analysis at all times

Explanation:

Economics assumes that everyone is rational and will always choose an option that yields the highest utility in all cases. This accounts for the term "the rational human being" in Economics.

5 0

3 years ago

What happens when network externalities are present?

wolverine [178]

I think it is either C or D. I'm not sure which one though. Hope this helped, have a great day! :D

4 0

3 years ago