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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 The interest earned every  year is not withdrawn but is added to the principal amount.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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Roberta transfers property with a tax basis of $495 and a fair market value of $546 to a corporation in exchange for stock with
Volgvan

Answer: $546

Explanation:

The amount realized by Roberta in the exchange will be gotten through the addition of the fair value of the stock that was acquired to the liability that's assumed by the corporation. This will be:

Fair value of stock acquired = $356

Add: Liability assumed by corporation = $190

Amount realised = $356 + $190 = $546

5 0
3 years ago
In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to
ozzi

Answer:

Freight-absorption

Explanation:

Based on the information provided within the question it can be said that the Texas Granite Company in Dallas should use Freight-absorption pricing in this situation. This is a pricing strategy in which the seller takes responsibility for all the freight charges that the company incurs in order to attract the amount of business that they hope to achieve. Since company's that are looking to buy see 0 freight charges it becomes a deal since they are saving money as opposed to buying from another company that charges the freight charges to the buyer.

6 0
2 years ago
At the present time, Water and Power Company (WPC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding
kicyunya [14]

Answer:

6.53%      

Explanation:

For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:

Given that,  

Present value = $1,050.76

Future value or Face value = $1,000  

PMT = 1,000 × 10% = $100

NPER = 5 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying this above formula

1. The pretax cost of debt is 8.70

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 8.70% × ( 1 - 0.25)

= 6.53%      

6 0
2 years ago
Dave is a handsome and famous celebrity. he has been dating gabriela, a beautiful and popular actress, for the past two months,
Leto [7]
According to the investment model there should be a degree of satisfaction in the relationship to have stability. But Dave doesn't have that commitment which means he is not satisfied with his relationship. This led him to be attracted with other women he worked with. He felt that these women showed interest to him and he thought of this can be the opportunity to find someone else. This is his alternative to find satisfaction that he is looking for.
4 0
3 years ago
which of the following is true of a sole proprietorship? a business operated under sole proprietorship cannot be transferred. b)
son4ous [18]

The statement that is true of a sole proprietorship is that a) a business operated under a sole proprietorship cannot be transferred.

A proprietorship can legally have the handiest one, proprietor. This is due to the fact the commercial enterprise serves as a part of the enterprise proprietor's private identification and vice versa. If a proprietor wants to expand their business and take delivery of new companions and traders, they would restructure the employer and contain it.

Any individual who wants to start a commercial enterprise with less investment can choose this sort of commercial enterprise form. It is able to be started in a time span of 10-15 days. Additionally, the control within the business is solely for your arms.

The proprietorship has been described because the only enterprise form underneath which you'll be able to perform a commercial enterprise. It isn't a legal entity and definitely refers to a person who owns the commercial enterprise, individually responsible for its debt.

Learn more about proprietorship here brainly.com/question/12913114

#SPJ4

8 0
1 year ago
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