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Eduardwww [97]
3 years ago
12

Why is compound interest preferable to simple interest when investing?

Business
1 answer:
lions [1.4K]3 years ago
3 0

Answer:

O Compound interest pays interest both on the principal and the interest earned in each period.

Explanation:

Compound interest is preferred as it measures the interest on the principal amount and the accrued interest. In the compounding interest, the interest i.e. earned should be added to the principal in order to create the new principal amount. The interest earned at the closing of every year should be more than the last period as the principal amount rises at the starting of the period

Also, the interest earned via the compound interest should be grown much faster as we compared to the fixed rate interest

Therefore the last option is correct

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Sales is in Units of $1000.00 and Advertising is in Units of $100. what is the value of sales increase when we say it is increas
8_murik_8 [283]

Answer:

The value of sales increase when when advertising is increased by one unit is $123.3

Explanation:

The value of sales increase is obtained by differentiating the sales equation (Y) with respect to advertising (X)

Y = 45.9 + 123.3X

dY/dX = 123.3

Increase in sales when advertising is increased by one unit = $123.3

8 0
3 years ago
Be3bl08r.42.028
Zepler [3.9K]

the answer is b message me if it is wrong

5 0
3 years ago
The Galindo family plans to start a small business in our neighborhood. The father
dmitriy555 [2]

Answer:

$2,625

Explanation:

Interest is calculated using the formula

I = p x r x t

For Galindo family

I= interest,

P = principal amount : $10,000

r= Interest rate: 7.5 % or 0.075

t= times in years : 3.5 years( 42 months /12)

I= $10,000 x 0.075 x 3.5

I=750 x 3.5

I=$2,625

3 0
3 years ago
Herr Corporation has 3,000 shares of 8%, $120 par value preferred stock outstanding at December 31, 2017. At December 31, 2017,
Sliva [168]

Answer:

1. $28,800

$103,200

2. $28,800

$103,200

3. $86,400

$45,600

Explanation:

1. The dividend paid to preferred stockholders = Shares × Par value × Percentage

= 3,000 shares × $120 × 8%

= $28,800

The dividend paid to Common stockholders = Cash dividend - Dividend paid to preferred stockholders

= $132,000 - $28,800

= $103,200

2. The dividend paid to preferred stockholders = Shares × Par value × Percentage

Note :- Because preferred stocks are non-cumulative in nature, the company is not allowed to pay last two years' dividends and preferred stocks are liable for payment only for the current year.

= 3,000 shares × $120 × 8%

= $28,800

The dividend paid to Common stockholders =  Cash dividend - Dividend paid to preferred stockholders

= $132,000 - $28,800

= $103,200

3. The dividend paid to preferred stockholders = Shares × Par value × Percentage × Number of years

Note: Since preferred stocks are cumulative in nature, the company is forced to pay last two years' dividends along with the current year's dividend.

= 3,000 shares × $120 × 8 % × 3 years

= $86,400

The dividend paid to Common stockholders = Cash dividend - Dividend paid to preferred stockholders

= $132,000 - $86,400

= $45,600

4 0
4 years ago
Jaleel's work group meets face-to-face and generates numerous alternatives to a product issue, many of them radical and a few ou
Paladinen [302]

Answer:

brainstorming as a part of it’s decision making process

8 0
3 years ago
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