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3 years ago

Summarize how compound interest helps you to accumulate savings even faster.

Business

1 answer:

yulyashka [42]3 years ago

4 0

Answer:

The magic of compound interest happens in a way that the more you put in, the faster your money grows.

Explanation:

The magic of compound interest happens in a way that the more you put in, the faster your money grows. The interest you earn on the amount you save also earns interest and this snowballing effect makes you accumulate your savings even faster. For example, if you deposit $100 in a savings account that pays 5% interest per year. At the end of the year, you account will have (5%*100= 5) plus the $100 you deposited, coming to a total of $105. At the end of the second year, your $5 interest earned in year 1 will earn another 5% interest and so will the $100 you initially deposited.

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Suppose the U.S offered a tax credit for firms that built new factories in the U.S. Then __________a The demand for loanable fun

nadezda [96]

Answer:

Option (b) is correct.

Explanation:

When the united states offered a tax credit to the firms that built the new factories then this will increase the demand for loanable funds because every firm wants to built a new factory, so that they are eligible for the tax credit given by the U.S.

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3 years ago

The Hot Dog Shack wants to raise $1.2 million by selling some coupon bonds at par. Comparable bonds in the market have a 6.5 per

Bad White [126]

Answer:

6.75%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

This is correct Present value = $976.87

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PMT = 1,000 × 6.5% = $65

NPER = 15 years

The formula is shown below:

= Rate(NPER,PMT,-PV,FV,type)

The present value come in negative

So, after solving this, the answer would be 6.75%

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B.
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D.
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