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solong [7]
3 years ago
11

Which describes the difference between simple and compound interest?

Business
2 answers:
LenKa [72]3 years ago
7 0

Answer:

Simple interest is calculated as a percentage of the principal amount and stays the same if the principal.amount and the percentage don't change.

However, the compound interest is based on accumulating the interest to the principal amount. That is, after a certain percentage is calculated as the interest, that interest is added to the principal amount and the next period's interest is based on the principal+the interest.

Explanation:

soldier1979 [14.2K]3 years ago
3 0

Answer:

Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal amount of a loan or deposit, it's easier to determine than compound interest

Explanation:

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Sales for BMW models are often highest in the last model year. By adding versions like a convertible model or features such as a
dimaraw [331]

Answer:

The correct option is (d)

Explanation:

Products have a cycle starting from introduction, growth, maturity and decline. This is called product life cycle. Considerable investment is required at introduction stage. Once the product is profitable, it enters growth stage and at maturity, it is at the most profitable stage. A product reaches decline stage as competitors step in and better products are made available in the market.

By adding features to its models, BMW is trying to lengthen its product life cycle so as to avoid the product's entry to decline stage soon.

8 0
3 years ago
The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $60 First
Rus_ich [418]

Answer:

The answer is: the amount of inventory at the end of the year was $1,583 using the average cost method.

Explanation:

The average cost method calculates the cost of inventory by dividing the total costs of goods by the total units.

  • 10 units x $60 = $600
  • 25 units x $65 = $1,300
  • 30 units x $68 = $2,040
  • 15 units x $75 = $1,125

The total cost of inventory is $5,065 ($600 + $1,300 + $2,040 + $1,125)

The total units in inventory are 80 (10 + 25 + 30 +15)

To find the average cost per unit = $5,065 / 80 units = $63.31

If 25 units were left at the end of the year, then the total cost of inventory is $63.31 x 25 = $1,582,81 or $1,583

3 0
2 years ago
The systematic risk principle states that the expected return on a risky asset depends only on the asset’s ___ risk.
Ahat [919]

The systematic risk principle states that the expected return on a risky asset depends only on the asset’s <u>market </u>risk.

<h3>What are systematic risk principles?</h3>

According to the systemic risk concept, the expected return on an asset is solely determined by its systematic risk. As a result, regardless of how much overall risk an asset carries, just the systematic part is significant in estimating the expected return (including risk premium) on such asset.

Market risk is a kind of systematic risk that affects the entire market. Because it cannot be diversified and distributed, the investor is compensated for it.

Learn more about systematic risk principles here:

brainly.com/question/25821437

#SPJ1

Learn more about systematic risk principles here:

5 0
1 year ago
Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long ru
Ber [7]

Answer:

1- a. A stock's intrinsic value is based on true investor return.

2- a. Most investors prefer companies that can rise prices beyond reasonable levels.

b. Successful companies can avoid raising external funds in the financial markets.

Explanation:

Intrinsic value of a company's stock is the real value of stock which is based on systematic factors affecting the company. The factors affecting the intrinsic value of company are usually internal factors. The performance of company management, employee satisfaction and its operational efficiencies are the factor which drive intrinsic value of a company.

6 0
2 years ago
ason owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Jason ne
Tomtit [17]

Answer: reciprocity

                       

Explanation: In simple words, reciprocity refers to the agreement in which two parties exchange goods or services in such a way that both of them will gain benefit from such agreement.

In business it can achieved in many ways, for example by combining the efforts and resources or by providing each other some service in exchange for service from the other side.

In the given case, Jason made a deal with dodge to provide service to him in exchange for service by him. Hence we can conclude that the given case depicts reciprocity.

4 0
3 years ago
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