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Ulleksa [173]
3 years ago
10

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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6. You own a company. You have identified a safety issue with one of your products. The company could
seraphim [82]

Answer:

B. immediately recall the product.

Explanation:

If a safety issue is identified in one of my product as a company owner, the first thing to do is to immediately recall the product. Recalling means asking people that are currently in charge of the product to return it in order to determine the ROOT CAUSE of the issue.

Once the product is recalled, then further investigation can be carried out. First is to determine what might be the root cause of the issue. This is done by questioning those that are in charge of the production processes. After different and diverse answers to questions, then I can streamline the answers to those we considered as the root cause of the problem to minimum before proffering necessary measures to be carried out in order to prevent the issue from occurring in the future.

The next step will be the implementation of the measures. If the measures that were put in place were able to solve the safety issue, then we can document and validate it so that can it can be referenced to in future in case of similar occurrence.

3 0
3 years ago
Read 2 more answers
A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $800. What wil
madam [21]

Answer:

40 dolllar for interest income

Explanation:

The taxable income will be the interest for the annual coupon payment:

$1,000 face value x 4% = $40

The purchase price will be considered for taxation purpose under capital gain if the bond is sold which is not the case. Thus, we must only determinate taxes considering the interest income from the coupon payment.

6 0
4 years ago
The shareholders need to earn 20%. The firm can borrow at 5%. The risk free rate is 2%. The tax rate is 40%. Find the weighted a
lbvjy [14]

Answer:

11.5%

Explanation:

The computation of the weighted average cost of capital is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

= (0.50 × 5%) × ( 1 - 40%) +  (0.50 × 20%)

= 1.5% + 10%

= 11.5%

Basically we multiplied the weightage of capital structure with its cost so that the weighted average cost of capital could come

3 0
4 years ago
Which is the most accurate definition of body language?
boyakko [2]

Answer:

b

Explanation:

b

4 0
3 years ago
Read 2 more answers
Increased government debt can lead to higher interest rates​ and, as a​ result, crowding out of private investment spending. In
adelina 88 [10]

Answer:

1. Debt-spending on education

2. Debt spending on highways and ports

3. Debt-spending on research and development

Explanation:

Following are the steps which must be taken to offset the effect of crowding out in long-run. These steps are critical. The first step is government should spend more on education. Likewise, the debt spending on highways and port is critical, that is to develop infrastructure to restructure the economy. The last step is to spend government debt on research and development process.

5 0
3 years ago
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