1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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 The interest earned every  year is not withdrawn but is added to the principal amount.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.

You might be interested in
What type of consumer debt is the largest in the united states
ankoles [38]

Hi !!

The largest consumer debt concerns home mortgage.

it has gone up to 9,14 trillions.

In second place comes student loans

-

☺☺☺

7 0
3 years ago
So if I ask a question does it take away my points or does it just get points from somewhere else and give it to you guys?? And
stealth61 [152]

yes your right it takes your points but it only gives us 5 to 100 and you but 5 so you only lost five and i got five but if you give brainest i will get 11 more so you should mark brainlest for ex

8 0
3 years ago
Read 2 more answers
In general terms, how would a change in investment opportunities affect the payout ratio under the residual payment policy?
adell [148]

Companies with residual dividend policies priorities paying capital expenditures out of earnings.

<h3>What is payout ratio?</h3>

The payout ratio, which is calculated as a percentage of the firm's total earnings, demonstrates the part of earnings that a company distributes to its shareholders in the form of dividends. By dividing the total dividends given out by the net income made, the computation is arrived at.

For dividend investors, the dividend payout ratio is a crucial indicator. It demonstrates how much of a company's earnings are distributed to investors. The higher that number, the less cash a corporation has left over to fund dividend growth and corporate expansion.

Companies with residual dividend policies priorities paying capital expenditures out of earnings. Any unused revenues are then used to pay dividends. Long-term debt and equity are often both parts of a company's capital structure.

To learn more about payout ratio refer to:

brainly.com/question/13083753

#SPJ4

6 0
1 year ago
Which of these changes are planned and based on situations that are expected to arise?
babunello [35]
<span>..(B).. Exponential..</span>
5 0
3 years ago
Jeff works as a computer repair technician
lubasha [3.4K]
The answer to the question above as to what types of income does Jeff have if he works as a computer repair technician and he has money in a savings account and he owns some stock as an investment, Jeff gains his income through salary from his job as a repair technician, interest in the savings account and dividend in the stocks.
7 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following characteristics differentiates a firm in an oligopolistic market from a firm in a perfectly competitive m
    11·1 answer
  • Which of the following exams helps you get into the US army?
    11·2 answers
  • Mary invested cash in her new business. which effect will this have?
    7·1 answer
  • A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local produce
    15·1 answer
  • How should a destroyed check by recorded in a check register?
    10·1 answer
  • Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)
    9·1 answer
  • Matching. A shopper is in the grocery store, trying to decide whether to buy apples of a particular variety. Identify the food p
    14·1 answer
  • The table shows an indifference schedule for several combinations of x and y. Approximately how much of y is the consumer willin
    11·1 answer
  • Partners Cantor and Dickens have capital balances in a partnership of $153000 and $241000, respectively. They agree to share pro
    5·1 answer
  • Opportunity cost occurs because of a producer’s need to
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!