Answer:
Compound interest is better than simple interest
Explanation:
Compound interest is better than simple interest especially when it comes to investing. Funds grow at a faster rate in compound interest than simple interest.
Simple interest is the interest on only the principal while compound interest is the interest on principal and on the previous accumulated interest (that is, interest on interest).
The formula for simple interest is:
P x r x t
Where P is the principal
r is the interest rate
t in the time.
For compound interest:
A=P(1+r/n)^nt.
A is the amount after compounding.
P is the principal.
r is the interest rate
n is the number of times interest compounds(adds up) per year
t is the number of years.
Answer:
The answer is false
Explanation:
Breadth, refers to the number of product lines offered by a firm
Answer:
$544.265
Explanation:
Given:
FV = $1,000
Yield to maturity = 5.2%
N = 12 years
Required:
Find the value of the zero coupon bond.
Use the formula:
PV = FV * PVIF(I/Y, N)
Thus,
PV = 1000 * PVIF(5.2%, 12)
= 1000 * 0.544265
= $544.265
The value of the zero coupon bond is $544.3
Answer:
Allocate existing resources more efficiently among competing uses.
Explanation:
The main goal of resource development is to find ways that allocate resources more efificiently, to spread the available resources in a way that maximizes economic and social benefit taking into account the different competing uses.
Resource development does not necessarily promote central planning because it can make use of market strategies to achieve its goal, and it cannot increase the amount of resources available as well, because these are determined by the natural endownment that each area has.