1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DaniilM [7]
3 years ago
8

Interest-on-Interest Consider a $1,500 deposit earning 4 percent interest per year for 7 years. How much total interest is earne

d on the original deposit (excluding interest earned on interest)?
Business
1 answer:
valentina_108 [34]3 years ago
7 0

Answer:

<em>Interest earned </em>     =   $420

Explanation:

T<em>he total worth of the investment after the the investment period compounded at certain rate  is called the Future Value.</em>

Future Value= Principal + compounded interest i.e

FV = P × (1+r)^n

r- rate, FV- future value , n- period

FV = ? , P -1,500, r- 4%, n-7 years

FV = 1,500  ×1.04^(7)

FV = 1973.897669

<em>Interest earned (compound intrest) = FV - Principal amount</em>

                         = 1973.897669 - 1,500

                        =  $473.89

Without interest earning interest.

The amount of interest earned will be computed on the principal only

Interest earned = $1,500× 4%× 7

                         = $420

You might be interested in
David bought a pickup truck to transport his equipment on weekend fishing trips. He also bought a trailer for his lawn maintenan
trasher [3.6K]

Answer:

B2C and B2B, respectively.

Explanation:

The pickup that David bought to transport equipment on weekend fishing trips should be considered a business to consumer (B2C) transaction David will use it for recreational activities.

The trailer that David bought to transport his lawn maintenance equipment should be considered a business to business (B2B) transaction David will use it for his lawn maintenance business.

6 0
3 years ago
Consider This) Susie purchased a nonrefundable ticket to a soccer match for $20. It will cost her $10 worth of gas and wear and
kumpel [21]

Answer:

The $20 ticket to the match.

Explanation:

The sunk cost would be the $20 ticket to the match.

3 0
3 years ago
Cash flows from activities include both inflows and outflows of cash from the external funding of a business. True or false?.
user100 [1]

True.

Cash flows from activities include both inflows and outflows of cash from the external funding of a business.

<h3>Cash Flow from Financing Activities: What is it? </h3>
  • The net amount of financing a business generates during a specific time period is called cash flow from financing activities.
  • The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.

<h3>What Are the Different Types of Cash Flows? </h3>
  • Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing.
  • The reverse of a cash outflow is a cash inflow, which is money entering a business.

<h3>What three different forms of cash flows are there?</h3>

To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:

  • cash flow from operating operations
  • cash flow from investing activities
  • cash flow from financing activities.

The cash flow statement of a corporation includes all three.

  • Items like dividends and interest payments are excluded.
  • stock, debt, or alternative sources of funding.
  • Asset depreciation for capital goods

To learn more about financing activities visit:

brainly.com/question/16377227

#SPJ4

3 0
2 years ago
Gains in income and wealth translate into an increased likelihood of having good health, showing a clear link between health and
a_sh-v [17]
It’s not for African Americans as a group even with higher levels of income and education.
7 0
3 years ago
2.) Which of the following is true? A. The convenience yield is always positive or zero. B. The convenience yield is always posi
charle [14.2K]

Answer:

The correct answer is letter "A": The convenience yield is always positive or zero.

Explanation:

The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.

<em>The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.</em>

7 0
3 years ago
Other questions:
  • Suppose the multiplier is 5 and the government increases its purchases by $15 billion. Also, suppose the AD curve would shift fr
    13·1 answer
  • Dyed-Denim Corporation is seeking to lower the costs of value creation and achieve a low-cost position. As a result, it plans to
    7·1 answer
  • The following amounts were obtained from the accounting records of Enderle Company: 2016 2017 2018 Beginning inventory $38,900 (
    15·1 answer
  • You are considering adding a new security to your portfolio. To decide whether you should add the security, you need to know the
    8·1 answer
  • Hank purchased a new grill for $349 on his credit card. He had a previous balance of $225.91. A finance charge of $8.62 was asse
    7·2 answers
  • HD had reported a deferred tax asset of $130 million with no valuation allowance. At December 31, 2021, the account balances of
    9·1 answer
  • Gardner electric has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. the t-bill rate is 4.00%, and the t-
    10·1 answer
  • What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet? Do you believe Blai
    15·1 answer
  • if the federal reserve decreases the reserve rate from 10% to 8%, how does this affect the amount of money that would result bec
    12·1 answer
  • According to Michael Kremer, large populations: a. require the capital stock to be spread thinly, thereby reducing living standa
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!