Answer:
The false statement is letter "A": The effect of compounding is great over short time periods, but then it begins to decline as the horizon grows.
Explanation:
Interest on interest or Compound Interest is the money accrued out of an interest rate plus all the interest earned accumulated on a certain period of time. The compound interest can be calculated on a daily, monthly or yearly basis. If the frequency of the compound interest is set in shorter periods of time, it will be more beneficial for the investor.
In that sense, option letter "A" is false since interest on interest does not decline over time but increases.
GDP (gross domestic product) is one of the primary factors used to test the countries economic health. It represents the total dollar value of all goods and services produced over a specific period.
Hope this helps!
Answer:
Price of the bond is $1,215.57
Explanation:
Price of the bond is actually the present value of all cash flows of the bond. Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $110 x [ ( 1 - ( 1 + 7% )^-7 ) / 7% ] + [ $1,000 / ( 1 + 7% )^7 ]
Price of the Bond = $592.82 + $622.75
Price of the Bond = $1,215.57
Answer:
well in 3 years you will get 4,500 so you will get a profit of 1,000 but hats in three years pls mark as brainliest.
Explanation:
