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Rom4ik [11]
3 years ago
10

After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exc

eed the future value based on simple interest.
a. True
b. False

The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods.
a. True
b. False
Business
1 answer:
kari74 [83]3 years ago
3 0

Answer: 1. False

2. True

Explanation:

1. Compound Interest allows an investor to earn money on the interest that has already accrued to the investment instead of just on the original investment like Simple interest. For this reason, the future value of compound interest will always be larger than simple interest for the simple reason that Compound interest is being charged on an amount larger than the amount being used for Simpler interest.

2. The process of compound interest does indeed allow a depositor/ investor to earn interest on any interest earned in prior periods. For instance, if the interest rate on a $500 saving is 10% per annum and it is using Compound interest, in the first year the interest earned will be,

= 10% * 500

= $50

In the second year the interest earned will be,

= 10% * 500 + the previous year interest

= 10% * 550

= $55

Notice how the interest has increased.

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____ reading will increase your focus and concentration, help you understand the reading, and prepare you to study.
Studentka2010 [4]

Answer:

Active.

Explanation:

Active reading can be defined as a process which typically involves an individual being focused on his or her study. It is aimed at acquiring knowledge and understanding of a particular subject or topic without distractions.

Hence, active reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

5 0
3 years ago
9) Selected information regarding a company's most recent quarter follows (all data in thousands). 9) _______ Direct labor $540
disa [49]

Answer:

Direct material= $340

Explanation:

Giving the following information:

Direct labor $540

Beginning work in process inventory $330

Ending work in process inventory $420

Cost of goods manufactured $1620

Manufacturing overhead $830

T<u>o calculate the direct material used in production, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

1,620= 330 + DM + 540 + 830 - 420

Direct material= $340

6 0
3 years ago
One reason to buy a home instead of rent a home is
EleoNora [17]
A home you can live in it longer than when you rent a home.
5 0
3 years ago
Read 2 more answers
A group of farmers agreed that if any farmer suffered a property loss, the loss would be spread over the entire group. In this w
mixas84 [53]

Answer:

pooling losses

Explanation:

This agreement embodies the concept of pooling losses. In this concept, each individual loss is spread over to the entire group. In order for this arrangement to be effective, a large number of farmers are required, so whenever a farmer suffers a loss, it will be mitigated due to the pooling over the large group.

8 0
3 years ago
What effects did the Embargo Act of 1807 have on American industry? increased international competition forced U.S. to become mo
Anettt [7]

Answer:

forced U.S. to become more self-reliant

Explanation:

The 1807 Embargo Act in the short run resulted in very serious negative effects, but in the long run it helped the American economy to be more self-reliant.

Some of the negative effects on the short run include:

-agricultural products' prices and earnings decreased

-shipping-related industries were devastated

-existing markets were wrecked

-unemployment increased

-smuggling was widely endorsed by the public

-prices of domestic shipping increased

-imports and exports decreased

As a very positive effect, specially on the long run, it increased reliance on domestic manufacturing .

4 0
3 years ago
Read 2 more answers
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