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Maksim231197 [3]
4 years ago
8

_____ refers to a process by which you earn interest not only on the money you directly invest but also on the interest you've e

arned in previous years.
Business
1 answer:
makvit [3.9K]4 years ago
7 0

Answer:

Compounding (Compound Interest)

Explanation:

Compounding (Compound Interest) refers to a process by which you earn interest not only on the money you directly invest but also on the interest you've earned in previous years.

Ex: $100 deposited @10% pa interest compounding annually for 2 years. Interest at 1st year end : 10% of 100 = 10 & Total Amount : 100 + 10 = 110.  Interest at 2nd year end : 10% of 110 = 11 & Total Amount : 121 .

The above case shows how interest in 2nd period is calculated not only on principal amount $100, but also on $10 interest earned in previous period. So, interest in 2nd period is calculated as  return percentage on 100 + 10 = 110.

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Davis is planning to buy a bike. He has the full amount in his bank account. He does not want to pay any interest on his purchas
professor190 [17]

Answer:

C

Explanation:

7 0
3 years ago
Cook Co. incurred the following costs related to the office building used in operating its sports supply company: Select each of
Leya [2.2K]

Answer:

a.Capital expenditure, replacement component

b.Capital expenditure, replacement component

c.Revenue Expenditure, not applicable

d.Capital expenditure, replacement component

e.Capital expenditure, additional

f.Revenue Expenditure, not applicable

g.Capital expenditure, additional

Explanation:

Capital Expenditure involve the addition or replacement on assets that <u><em>increases flows of economic benefits or Income earning</em></u> capacity.

Revenue Expenditure involve repairs or maintenance of assets in order to <u><em>maintain the ability to earn income or economic benefits</em></u> and not to increase it.

8 0
3 years ago
TRUE OR FALSE: Take-home pay minus total living expenses equals money available for savings and investment
Alik [6]

Answer:

TRUE

Explanation:

Take-home pay is the gross pay minus all deductions. Deductions include statutory and voluntary deductions. Take home is the money that gets to the employee's bank account.

In most households saving and investment are done after meeting the basic expenses. In other words, people will save or invest after meeting their basic needs. Therefore, take home minus total expenses necessary for life is saving and investment

7 0
3 years ago
Three individuals, Mary, Jack and Helen, make up the total demand for donuts per month in a particular market.
Paraphin [41]

The market demand curve would be 1000 - 0.125Q.

<h3>How to calculate the demand curve?</h3>

It should be noted that the market demand curve will be the sum of the individual demand curve.

The market demand curve will be calculated thus. Mary’s demand curve is 5P = 5000 – 1.25QM. Here, p = 1000 - 0.25QM

Jack’s demand curve for donuts is given by P = 1000 – 0.5QJ. Helen’s demand curve is given by QH = 2000 – 2P. This will be P = 1000 - 0.5QH.

The slope will be:

= 0.5 × 0.25

= 0.15

The demand function of Jack and Helen are the same. The demand curve will be 1000 - 0.125Q.

Learn more about demand on:

brainly.com/question/1245771

#SPJ1

5 0
3 years ago
____________ contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tende
Helen [10]

Answer: Destination Contract.

Explanation:

Destination Contract is a contract for the sale of goods, in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination.

The seller assumes liability for any losses or damage to the goods until they are tendered at the destination specified in the contract.

The seller bears the risk of loss until he completes his delivery requirements as stated under the destination contract. If the goods are destroyed or damaged while in transit to buyer, the seller bears the loss.

After the delivery company has delivered the goods at the buyer’s location, then the seller is no longer liable for any damages after that.

5 0
3 years ago
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