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3 years ago

Why does compound interest earn more than simple interest

Business

1 answer:

bonufazy [111]3 years ago

5 0

Answer:

Answer to the following question is as follows;

Explanation:

Compound interest accelerates the growth of money because, in response to gaining returns on the investment you invest, you also gain revenue on those yields at the conclusion of each compounding period, which might be daily, monthly, bimonthly, or yearly.

The amount owed of a loan or investment is used to calculate simple interest. Compound interest, on the other hand, is calculated using the principle amount and the inclination that accumulates on it over time.

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At its inception, Peacock Company purchased land for $50,000 and a building for $220,000. After exactly 4 years, it transferred

Viktor [21]

Answer:

Selvick company should record the building at $220,000 and accumulation depreciation of $44,000

Explanation:

The computation of deprecation is shown below:

Depreciation = (Original cost - salvage value) ÷ useful life

where,

Original cost is $220,000

Salvage value is 0

And, the useful life is 20 years

Now put these values to the above formula

So, the answer would be equal to

= $220,000 - 0 ÷ 20

= $11,000

And, the accumulated depreciation would be

= Depreciation × number of years

= $11,000 × 4

= $44,000

we ignored other information which is given in the question, as we have to compute the depreciation through Straight line method.

Hence, Selvick company should record the building at $220,000 and accumulation depreciation of $44,000

7 0

3 years ago

hen a monopolist is able to sell its product at different prices, it is engaging in a. distribution pricing. b. quality-adjusted

sertanlavr [38]

Answer:

Price discrimination

Explanation:

Price discrimination is charging customers differently for the same product.

Price discrimination is a type of selling strategy where customers are charged for same goods and services. The seller charges based on what they think that the user is likely to pay.

6 0

3 years ago

Duerr Company makes a $69,000, 30-day, 10% cash loan to Ryan Company. The note and interest to be collected at maturity is: (Use

Dimas [21]

Answer:

the journal entry to record the loan:

E.g. January 1, 202x, loan made to Ryan Company

Dr Notes receivable 69,000

Cr Cash 69,000

the journal entry to record the collection of the note:

E.g. January 31, 202x, note collected from Ryan Company

Dr Cash 69,575

Cr Notes receivable 69,000

Cr interest revenue 575

interest revenue = $69,000 x 10% x 30/360 = $575

4 0

3 years ago

A company began the year with assets of $117,000, liabilities of $28,500, and stockholders' equity of $88,500. During the year a

algol [13]

Answer:

Change in liabilities = $33,300

Explanation

<em>According to the accounting equation, assets is equal to liabilities + equity. And this equation can be re-written as:</em>

Liabilities = assets - equity

Liabilities at the end of the period = assets at the end - equity at the end

Assets at the end= 117,000 + 56,700= 173,700

Equity at the end = 88,500 + 23,400 = 111,900

Liabilities at the end = 173,700 - 111,900=61800

Change in liabilities = Liabilities at the end - Liabilities at the beginning

Change in liabilities = 61,800 - 28,500= $33,300

8 0

3 years ago

If you consider yourself to be highly logical and you enjoy working computers, the career cluster might be best for you

vovikov84 [41]

Answer:

Information Technology Cluster

Explanation:

The Information Technology cluster uses your love of technology to learn how to design, develop and manage different types of software and hardware programs.

The information technology cluster is composed of the following four career pathways: information support and services, interactive media, network systems, and programming and software development.

3 0

3 years ago

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