Answer:
<em>All other variables held constant, investments paying simple interest have to pay significantly higher interest rates to earn the same amount of interest as an account earning compound interest.</em><u><em> </em></u><u>TRUE. </u>
This is a true statement because compound interest is based on the previous balance in addition to the interest earnings on the balance. It therefore accrues on a higher balance than simple interest which builds on the same amount of principal throughout. Simple interest would therefore need a higher rate to bridge this gap.
<em>Everything else held constant, an account that earns compound interest will grow more quickly than an otherwise identical account that earns simple interest.</em> <u>TRUE. </u>
An account earning compound interest would increase faster than an identical one using simple interest because compound interest is based on an accrued balance whilst simple interest does not change the balance it is based on.
<em>All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year.</em> <u>TRUE. </u>
At the end of the first year, an assuming yearly compounding, both simple and compound interest will yield the same result because they would be based on the same principal amount.
Answer:
$1.51
Explanation:
Calculation to determine the earnings per share
Using this formula
Earnings per share = (Retained Earnings + Dividend paid out) / Common stock outstanding
Let plug in the formula
Earnings per share= ($553,000+$191,000)/240,000
Earnings per share=$362,000/240,000
Earnings per share= $1.51
Therefore Earnings per share is $1.51
Hey there!
I believe the answer to your question would be B.) The interviewer can record both observations and responses.
In an online survey, you can just put random answers, but in an actual interview, the interviewer can catch you off guard, and they can see expressions and hear tone of voice, to really understand your answer.
Hope it helps and have a great day!
Answer:
9 years
Explanation:
Since inflation rate increases in a similar way to compound interest, we can use the rule of 72 to estimate the number of years required to double the prices.
The rule of 72 = 72 / inflation (or interest rate) = number of years needed to double the price (or capital)
72 / 8 = 9 years
Answer:
The answer is Sam's demand is perfectly inelastic.
Explanation:
Price elasticity of demand (PED) is a measure of how much quantity of a good or a service demanded responds to a change in its price.
Sams requests for 10 gallons of gas irregardless of the price which shows his demand is perfectly inelastic.