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STatiana [176]
2 years ago
9

Why does compound interest earn you a higher annual percentage yield

Business
1 answer:
gladu [14]2 years ago
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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When most economists wake up in the morning, their first decision is whether or not to his the snooze button on the alarm clock.
lions [1.4K]

Answer:

The correct answer is letter "E": The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.

Explanation:

Marginal Benefit is an economic term that describes the maximum amount a consumer is willing to pay for an additional unit of a good or service. Typically, the marginal benefit decreases as long as the person consumes more of that good or service. The price-benefit relationship is inversely proportional.

In the example, the marginal benefit of sleeping 10 minutes more must be greater than the marginal benefit of working 10 more minutes if economists choose to sleep a little bit more.

3 0
3 years ago
The primary focus for financial accounting information is to provide information useful for: Investing decisions Credit decision
matrenka [14]

Answer:

The correct answer is letter "A": Investing decisions (Yes); Credit decisions (Yes).

Explanation:

Financial Accounting refers to gathering, recording, summarizing and reporting financial data related to a company. The ultimate objective is to accurately report the financial picture and results of a company at a certain point in time and over a certain point in time.

<em>The information gathered is helpful for investors so they can make decisions over what course the firm should follow moreover when a company might need credit to finance its operations.</em>

6 0
4 years ago
Which estimating technique decomposes the work into lower, more detailed pieces, preferably the lowest level of WBS work element
elixir [45]

Answer: (C) Bottom-up estimating

Explanation:

The bottom-up estimating is one of technique used by the manager or lead of the project department in the project management process.

By using this technique the manager makes an estimated process for assigning the different types of task in project management and it also divide the task into the different groups so that they work done more efficiently and accurately.

According to the given question, the bottom-up estimating technique are used for decomposes the work into the detailed format.  

Therefore, Option (C) is correct.

4 0
3 years ago
In our class discussion of Cultural Pollution, we heard an example of provocative ads for Clearasil that upset come parents. In
vesna_86 [32]

Answer:

The correct answer is allowed to run; consumers will stop buying products if the ads are offensive.

Explanation:

The world of advertising is so big and rich that it is difficult to make a judgment about it. To please all the people who will see an advertisement to buy the product that is advertised, is a titanic work carried out by designers, the creators. The truth is that I can not imagine how they get so many ideas from their brain, I guess there will come a time when they run out, right?

Well, maybe not now, but in other times, the ads that were made were really bad and especially inappropriate and even violent, but still, the companies published them and people welcomed them, because otherwise, I can't understand , why they allowed this type of commercial to advertise a product.

8 0
4 years ago
Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest
katrin [286]

Answer:

The correct option is E,14

Explanation:

In using the two-day moving average to forecast for the next day sales, the previous two days sales are taken , summed to up and finally averaged(that is divided by 2)

Next day forecast=sum of previous two days sales figures/number of days

sum of previous two days  forecast=13+15=28

since the number of the days is 2 ,the 8 is divided by 2,28/2=14

Ultimately the next day forecast sales figure is 14 newspapers

Option A is wrong that is just considering of the two previous day, the same thing applies to option B.

Option C is the sum of previous two days sales without being divided

5 0
3 years ago
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