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2 years ago

Which best describes the difference between simple and compound interest

Business

2 answers:

saul85 [17]2 years ago

6 0

Answer:

While both types of interest will grow your money over time, there is a big difference between the two. Specifically, simple interest is only paid on principal, while compound interest is paid on the principal plus all of the interest that has previously been earned.

MA_775_DIABLO [31]2 years ago

4 0

Answer:

Simple interest is paid on large, long-term loans, while compound interest is paid on small, short-term loans. Simple interest is paid on the principal and interest accrued, while compound interest is paid only on the principal. Ask for details.

Explanation:

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The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $135,759 Common Stock $52,705

LiRa [457]

Answer:

The correct option is the third one,$250,687

Explanation:

The key to ascertaining is accounting equation which that assets equal capital plus liabilities.

This implies that by determining the capital and liabilities,total assets sorted out.

Common stock $52,705

*Retained earnings for the year $62,223

Total equity and retained earnings $114,928

total liabilities $135,759

Total equity and liabilities $250,687

Total assets=total equity and liabilities=$250,687

Retained earnings for the year=prior year retained earnings+net profit-dividends paid

prior year retained earnings $40,723

net profit is $36,500

dividends is $15,000

*retained earnings for the year=$40,723+$36,500-$15,000=$62223

8 0

2 years ago

Tom takes a loan of $60,000 at 4% annual interest to purchase a property worth $100,000. He earns an annual income of $10,000 af

guajiro [1.7K]

Based on the given data, Tom's leveraged return on the real estate investment is 13.3%.

A leveraged return means an investment return on equity partially financed with debt.

Investment in property = $100,000 - $60,000

Investment in property = $40,000

Interest = $60,000 * 4%

Interest = $2,400

Net income after tax = ($10,000 - $2,400) * (1 - 30%)

Net income after tax = $7,600 * 0.70

Net income after tax = $5,320

Leveraged return = Net income after tax / Investment in property * 100

Leveraged return = $5,320 / $40,000 * 100

Leveraged return = 0.133 * 100

Leveraged return = 13.3%

Hence, Tom's leveraged return on the real estate investment is 13.3%.

Learn more about leveraged return:

<em>brainly.com/question/14005616</em>

8 0

2 years ago

Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each depa

Goryan [66]

Solution:

S1 $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )

S2 total is $162,000 + $126,000 = $288,000

S2 $126,000 is allocated 19.7% to P2 or $81000

Under the step-method of cost allocation,

the amount of costs allocated from $2 to P2 would be $81000

5 0

3 years ago

Faith went to the grocery store to buy apples. if each apple cost $0.78, and she spent a total of $4.68, how many apples did fai

nirvana33 [79]

Faith bought 6 apples at $.78 each. She paid $4.68 for the apples.

Given : $.78 price for each apple

$4.68 the amount Faith spent for the apples.

$4.68 / $.78 = 6

4 0

3 years ago

The demand for textbooks is Q = 200 – P + 25 U – 50 P beer. Assume that the unemployment rate U is 8 and the price of beer P bee

Readme [11.4K]

Answer: -0.5

Explanation:

Based on the information given, the price elasticity of demand will be calculated as follows:

= dQ/dP × P/Q

where,

dQ/dP = -1

P = 100

Q = 200 – P + 25 U – 50 P beer

Q = 200 - 100 + 25(8) - 50(2)

Q = 200 - 100 + 200 - 100

Q = 200

Therefore, dQ/dP × P/Q

= -1 × (100/200)

= -1 × 1/2

= -1 × 0.5

= -0.5

The price elasticity of demand is -0.5.

4 0

3 years ago