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3 years ago

When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called

Business

1 answer:

mina [271]3 years ago

4 0

Answer:

Compound interest

Explanation:

Compound interest is a method of measuring interest by which interest is applied to the principal amount over time. You not only earn interest on the principal amount but also collect interest on your interest.

This tends to happen because you save your interest, rather than withdraw it

Hence, the compound interest is the correct answer

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Following are interest rates (annual percentage rates) for a 30-year-fixed-rate mortgage from a sample of lenders in a certain c

aalyn [17]

Hey There!:

Sample Mean = 4.4823

SD = 0.1859

Sample Size (n) = 7

Standard Error (SE) = SD/root(n) = 0.0703

alpha (a) = 1-0.99 = 0.01

t(a/2, n-1 ) = 3.7074

Margin of Error (ME) = t(a/2,n-1)x SE = 0.2606

99% confidence interval is given by:

Sample Mean +/- (Margin of Error)

4.4823 +/- 0.2606 = (4.222 , 4.743)

Hope this helps!

5 0

3 years ago

The Baldwin Company currently has the following balances on their balance sheet: Total Assets $167,705 Total Liabilities $69,461

Andrews [41]

The common stock next year would be $32546

The total assets (current) = $167,705

Total assets (next year) = $167,705 + $55,000 = $222705

The total liabilities (current)= $69,461

The total liabilities (next year)= $69,461

The total retained earnings (current) = $88,498

The total retained earnings (next year) = $88,498 + 44,200 - $12000 = $120698

<u>Common stock (current)</u>

= $167,705 - $69,461-$88,498

= $9746

<u>Common stock (next year)</u>

= $222705 - $69,461 - $120698

= $32546

The common stock next year would be $32546

Read more on common stock:

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5 0

3 years ago

Quinn contracts to provide ten tons of scrap steel at $500 per ton to Rendered Materials, Inc. An unforeseen shortage of scrap s

solong [7]

Answer:

C) performance of the contract is commercially impracticable.

Explanation:

Contract law contemplates certain situations where performing the contract is either difficult or impossible and therefore the party is not liable for breaching the contract.

Commercial impracticability applies to contracts where the performance of at least one party is impracticable and cannot be accomplished.

In this case, Quinn cannot perform his duty since the price of scrap steel increased beyond any reasonable price contemplated in the contract. Since Quinn is not responsible for setting the price of scrap steel, he is not liable for breaching the contract.

7 0

3 years ago

A bond with a 12 percent quarterly coupon rate has a yield to maturity of 16 percent. The bond has a par value of $1,000 and ma

Mekhanik [1.2K]

Answer:

fair value is $761

Explanation:

Given data

bond value = $1000

rater r = 12 %

rate R = 16%

time = 20 year

to find out

a fair price

solution

we know compounding period in year is = 4

so time 20 x 4 = 80

fair Price = $\sum_{k=1}^{k=80}$ [(Quarterly Coupon) / (1 + R/400)^t] +bond value / (1 + R /400)^t

here

Quarterly Coupon = 12 × 1000/400 = 30

fair Price = $\sum_{k=1}^{k=80}$ [(30) / (1 + 16/400)^k] + 1000 / (1+16/400)^80

solve it we get

fair value is $761

5 0

3 years ago

Suppose a firm has a monopoly on the sale of widgets and faces a downward-sloping demand curve. When selling the 100th widget, t

kirza4 [7]

When selling the 100th widget, the firm will always receive A. less marginal revenue on the 100th widget than it received on the 99th widget.

A downward-sloping demand curve simply means that when there's a reduction in the price of a good, the consumers will purchase more of that product.

Based on the information given, when selling the 100th widget, the firm will always receive less marginal revenue on the 100th widget than it received on the 99th widget. The marginal revenue is the increase in revenue based on an additional unit of output that's sold.

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5 0

3 years ago