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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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The answer is D. An increased interest rate. The bank will increase the interest rates on loans to get a return on their expences.
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The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed f
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Kindly check attached picture

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3 years ago
You have just won the lottery and will receive $460,000 in one year. You will receive payments for 27 years, and the payments wi
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Answer:

The present Value of my winnings = $4,578,716.35

Explanation:

An annuity is a series od annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected  to increase by a certain percentage yearly, it is called a growing annuity.

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we the formula:

PV = A/(r-g) ×  (1-  (1+g/1+r)^n)

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.

A/(r-g)

= 460,000/(12%-3%)

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(1-  (1+g/1+r)^n

1 - (1+3%)/(1+12%)^(27)

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3 years ago
The decision by GE to do business, through subsidiaries, with Iran would have been made at what organizational level? a. First-l
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D. Top management

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The top management of a company has the duty to oversee the entire company's operation. They are also the one that make a decision which will heavily influence the company's position in the future.

A decision for company to do business with subsidiaries with another country possess a lot of risk. It tends to require a lot of investment but with equally higher return.  Decision with this magnitude will most likely fall to the hands of the top managers in the company.

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