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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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Find out more on changes to the accounting equation at brainly.com/question/27905497

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2 years ago

Snyder Painting is transitioning to an ABC system. So far, the company has traced its costs back to several different activities

Andreyy89

Answer:

Snyder Painting

If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on

B. paint storage.

Explanation:

a) Identified Activities of Snyder Painting:

A. customer consultation.

B. paint storage.

C. site preparation and cleanup.

D. onsite paint application.

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3 years ago

Ploeger Corporation has provided the following contribution format income statement. Assume that the following information is wi

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Answer:

Break-even point (dollars)= $234,000

Explanation:

Giving the following information:

Sales (4,000 units) $ 240,000

Variable expenses 156,000

Fixed expenses 81,900

First, we need to calculate the selling price and unitary variable cost:

Selling price= 240,000/4,000= $60 per unit

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Now, we can calculate the break-even point in dollars, using the following formula:

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