The interest amount earned is removed from the accumulated amount of savings because the interest is simple interest.
<h3>What is Interest?</h3>
interest is the percentage amount earned over the savings made and deposited in the account, the interest is a basic market interest rate that is applied to the savings to calculate the amount of interest income for a given period of time.
The savings are deposited and they are applied for the interest rate the interest income is also included in the original savings, then for the next year the interest rate will again be only applied to the original savings amount and not the compounded amount that is the original amount of savings plus the interest earned in the first year.
That is why the interest earned in the first year is deducted from the total savings in the account to calculate the interest income for the second year.
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Answer:
The correct answer is the first option: Because of our limited incomes conflicting with our insatiable wants for goods and services.
Explanation:
To begin with, in the microeconomics theory, the individuals agents that are the consumers are all the time trying to satisfy their needs due to the fact that there is an unlimited desire for goods and services that keep continue to grow all the time and that conflicts with the fact that most of the people have only few and limited resources to get the necessary income to obtain all of those goods and services. That is why that the consumers always look for the way to maximize their satisfaction according to the available income that they have with the purpose to spend it on those goods and services.
Answer: Option C
Explanation: An adjustable mortgage (ARM) is a borrowing form in which the rate of interest charged to the remaining balance varies all across the loan's lifetime. The new interest rate is set for an amount of time with an adjustable-rate mortgage, after which it resets regularly, often quarterly or even monthly.
The mortgage can be given at the normal variable rate/base rate of the lender. There may be a clear and statutorily defined relation to the applicable index, but if the creditor does not provide a specific link to the underlying market or index, the rate may be adjusted at the option of the lender.
