Answer:
<em>All other variables held constant, investments paying simple interest have to pay significantly higher interest rates to earn the same amount of interest as an account earning compound interest.</em><u><em> </em></u><u>TRUE. </u>
This is a true statement because compound interest is based on the previous balance in addition to the interest earnings on the balance. It therefore accrues on a higher balance than simple interest which builds on the same amount of principal throughout. Simple interest would therefore need a higher rate to bridge this gap.
<em>Everything else held constant, an account that earns compound interest will grow more quickly than an otherwise identical account that earns simple interest.</em> <u>TRUE. </u>
An account earning compound interest would increase faster than an identical one using simple interest because compound interest is based on an accrued balance whilst simple interest does not change the balance it is based on.
<em>All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year.</em> <u>TRUE. </u>
At the end of the first year, an assuming yearly compounding, both simple and compound interest will yield the same result because they would be based on the same principal amount.
These are examples of <u>work-related</u> characteristics
The closing argument.
Hope this helps!
Answer:
Option d (economy of the country) is the appropriate answer.
Explanation:
- Along with many other things, the economy of such a given country is regulated by its society, rules, history, as well as geography, and then it develops out of requirement.
- This example better shows the operational effects of the country's economy although inflation continues threatening the position due to certain external causes and leading to a decrease in present value.
Some other options offered aren't relevant to the situation described. For the aforementioned to be the right answer.
Answer:
A. inconsistent reasoning; saving $20 is saving $20
Explanation:
As it is mentioned in the question that the electronic store offering a flat $20 off for all prices in the store
Now if Tony chooses with a price of $50 so it would be good offer but for $500 it won't be a good offer as if he invested large value of amount and in return he gets only $20 off which is not a good deal of course.
Therefore this given situation sets an example for inconsistent reasonings
Hence, the correct option is A.