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2 years ago

Why does compound interest earn you a higher annual percentage yield

1 answer:

5 0

The reason compound interest earn you a higher APY on savings account is with compounding you earn interest on the money that has already earned interest.

With compound interest, interest is earned on the amount of money that has already earned an interest. On the other hand, with simple interest, interest is earned only on the principal.

Imagine that you deposit $100 in a savings account with an interest rate of 10% and annual compounding.

Value of the account in one year = 100 x (1.1) = 110

Value of the account in two years = 100 x (1.1)² = 121

Imagine that you deposit $100 in a savings account with an interest rate of 10% and simple interest.

Value of the account in one year = 100 + (100 x 0.1 x 1) = 110

Value of the account in two years = 100 + (100 x 0.1 x 2) = 120

To learn more about compound interest, please check: brainly.com/question/7420113

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Explanation:

The computation of the total rental real estate and the royalty income is as follows;

For rental income and royalty

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3 years ago

A company's competitive strength scores pinpoint its strengths and weaknesses against rivals and Select one: a. point directly t

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Answer:

e. point directly to the kinds of offensive/defensive actions it can use to exploit its competitive strengths and reduce its competitive liabilities.

Explanation:

A competitive strength assessment is defined as a weighted comparism of a business's strengths and weaknesses compared to the competition. The knowledge gained can be used to improve on weak areas.

Competitive advantage is the traits that set a business aside and gives it an edge over others. Competitive strength assessment evaluates the competitive advantages of a company. Therefore it shows the kinds of offensive/defensive actions it can use to exploit its competitive strengths and reduce its competitive liabilities.

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3 years ago

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Explanation:

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4 years ago

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