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Lera25 [3.4K]
3 years ago
12

Tomas earned $89 in interest on his savings account last year and has decided to leave the $89 in his account this coming year s

o it will earn interest. This process of earning interest on prior interest earnings is called ________.
Business
1 answer:
mamaluj [8]3 years ago
7 0

Answer:

compound interest

Explanation:

compound interest is a practice where the interest earned qualifies to earn more interest. Compound interest is offered on some savings accounts. The interest earned every  year is not withdrawn but is added to the principal amount. The principal amount increases at the beginning of every period.

The act of adding interest to the principal, which results in interest earnings on interest, is known as compound interest. Accounts that offer compounding interest are preferred to simple interest accounts. A saved amount in a compound interest account will grow faster as the principal amount will increase every year.

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Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.
strojnjashka [21]

Answer:

Determine the total interest cost under each plan.

Plan 1  220320

Plan 2 224280

Explanation:

FIRST    

F = P ( 1 + i * n )    

   

F=720000(1+10,20%*3)  940320  

   

F=940320    

   

Interest=940320-720000  220320  

   

Interest 1= 220320    

   

SECOND    

F = P ( 1 + i * n )    

                                                  Interest 2

F=720000(1+8,5%*1)  781200 720000 61200

F=720000(1+12,9%*1)  812880 720000 92880

F=720000(1+9,75%*1)  790200 720000 70200

                                                    224280

6 0
3 years ago
Time preference is: a. the purchase of new capital goods. b. a sophisticated IOU that documents who owes how much and when payme
kirill [66]

Answer:

D. the desire to have goods and services sooner rather than later (all other things being equal).

Explanation:

The time preference talks about the placing relative value on goods received at an earlier date compared with receiving that particular goods at a later date. It is the assumption that people prefer a given goods or services be delivered sooner rather than later all things being equal. It occurs when a person focus on having a good sooner rather than later.

7 0
3 years ago
Read 2 more answers
A country has reached a level of economic development where the manufacturing of both semidurable and nondurable consumer goods
liubo4ka [24]

Answer: Takeoff stage

Explanation: In Rostow's five-stage model of economic growth  states various factors of the required economic condition necessary for that  country to develop. One such stage is the takeoff stage. i.e.

Take-off stage states  

(a)In this particular period Urbanization will increases.

(b)Industrialization proceeds as technological progress will take place.

(c) Secondary sector expands .

It should be also duly noted that during this stage,Textiles and apparel are usually the first "take-off" industry .

<u><em>Hence, a country  where the manufacturing of both semi durable and non durable consumer goods has just begun. Also, the goods demanded relate to equipment and supplies to support manufacturing has reached the takeoff stage in Rostow's five stage model of economic growth.</em></u>

5 0
3 years ago
Effective _______ is when customers can seamlessly search for a fashion brand merchandise on their smartphones, order the mercha
nordsb [41]

Answer:

The answer is: A) omnichannel distribution

Explanation:

Onmichannel distribution is a multichannel approach to sales were customers are provided with a seamless shopping experience by integrating operations between brick and mortar stores and online shopping.

The internet changed our world and made information available anywhere, anytime. So shoppers can now buy something online at 11 PM while lying on their beds and they can decide to get the products sent home or pick them up at a store by themselves.

Companies that aren´t able to offer this type of shopping experience will tend to disappear (i.e. Sears).

3 0
3 years ago
McQuilkin and Copan adopt different positions toward capitalism and socialism. Which author is more favorable to free market cap
Nimfa-mama [501]

Answer:

Paul Copan

Explanation:

Dr. Robertson McQuilkin can be considered a very biblical man, and as such, would always favor socialism more than free market capitalism. His phrase "Capitalism is for freedom, socialism is for equality" and the fact that he believed in a strict following of the Bible, you make him a more socialist person.

Dr. Paul Copan is also a very religious man, but his views are less extreme than Dr. McQuilkin's. He is more pragmatic and argues in favor of religion from a more neutral or agnostic point of view. He even argues that religious beliefs and economics are not mutually exclusive.

8 0
3 years ago
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