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Serhud [2]
3 years ago
5

What is the difference between simple and compound interest rates

Business
1 answer:
Vlada [557]3 years ago
3 0

Answer:

see below

Explanation:

Simple interest is a method of calculating gains or yields from savings, deposits, or credit. In simple interest, the interest earned is a constant figure throughout the life of an investment or loan. Simple interest is usually expressed as a percentage, called the interest rate. It is calculated by multiplying the interest rate by the principal amount and by the time. The interest rate quoted applies for a year.

Unlike simple interest, interest earned in compound interest increases every year. Compounding interest refers to the practice of adding interest earned to the principal amount. An increase in the principal amount results in an increase in the interest earned. Due to the compounding effect, a compound interest-earning account will yield more interest than a simple interest-earning account.

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The following transactions occurred during July: Received $1,050 cash for services provided to a customer during July. Received
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Answer:

$1,575

Explanation:

We will clasify the item "revenue" or "not":

  1. Received $1,050 cash for services provided to a customer during July -> yes, this is revenue
  2. Received $5,000 cash investment from Bob Johnson :  not revenue
  3. the owner of the business Received $900 from a customer in partial payment of his account receivable which arose from sales in June: not revenue for July, but June which was booked in June revenue already
  4. Provided services to a customer on credit, $525: yes, this is July revenue though it's still on account receivable
  5. Borrowed $7,500 from the bank by signing a promissory note: not revenue
  6. Received $1,400 cash from a customer for services to be rendered next year: not July revenue, it's customer advace and might be next year revenue once services are completed

So the amount of revenue for July = Received $1,050 cash for services provided to a customer during July + Provided services to a customer on credit, $525

= $1,050 +$525

=  $1,575

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What are municipal bonds? Describe two different types of municipal bonds<br><br> please help
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Answer:

There are two main types of municipal bonds: general obligation bonds and revenue bonds. Like Treasuries, GOs are backed by the issuer's taxing power. Revenue bonds, on the other hand, are repaid from a specified revenue stream.

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A person with an external locus of control , is the person who tends to believe that outside factors are in control on what happens to them .

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The fundamental driver of success has Clydea has emphasized on is speed. It could be seen in the scenario above as how she was able to take action in a faster way of having to make lattes and cappuccinos in the half time in which is a way of serving her customers in a faster way and a way of delivering quality and satisfactory performance to her customers. 

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