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2 years ago

Explain the differences and similarities between compound interest (for money saved) and compound growth (for money invested).

1 answer:

4 0

The similarities between compound interest and compound growth is that both are important for one to grow his money.

<h3>What is compound interest?</h3>

It should be noted that compound interest simply means the addition of interest to the principal sum money.

The similarity between compound interest and compound growth is that both are important for one to grow his money.

The difference is that compound growth calculates the gains based on the added result from the prior period.

Learn more about compound interest on:

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A number of years ago, Kay acquired an interest in a partnership in which she is not a material participant. Kay's basis in her

marshall27 [118]

Answer:

deduction = 0 in 2015

Deduction = $ 15000 in 2016

balance = $20000

it is carried forward to the year 2017

Explanation:

given data

partnership interest = $40,000

partnership loss = $35,000

partnership income = $15,000

to find out

How much may Kay deduct in 2015 and 2016

solution

we can say that Loss is adjust or deduct against Profit of Kay when it makes profit during a year

so as that Kay make loss in 2015 and no profits during that year to adjust those loses against

so deduction = 0 in 2015

but

in 2016

Kay income = $ 15000

Kay adjust loss of previous year against this income to extent of income available

so Deduction = $ 15000 in 2016

and after that

here balance after deducting the passive loss is

balance = $35000 - $15000

balance = $20000

it is carried forward to the year 2017

6 0

4 years ago

Which of the following is/are correct?

Elanso [62]

Answer:

c. III only

Explanation:

The correct option is - c. III only

Reason -

III option is correct because The trade-off theory states that there is an optimal level of debt for firms, given the benefits of tax shields and the costs of financial distress

5 0

3 years ago

What is the formula for the receivables turnover ratio?.

SOVA2 [1]

The formula for the receivables turnover ratio is net credit sales divided by average accounts receivable.

<h3>What is receivable turnover ratio?</h3>

The receivable turnover ratio is what measure the number of times over a given period that a company collects its average account.

It is the number of times per year that a business collects its average accounts receivable.

Hence, the formula for the receivables turnover ratio is net credit sales divided by average accounts receivable.

Learn more about receivables turnover ratio here : brainly.com/question/24849094

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8 0

2 years ago

In nearly half the cases in which u.s. firms have requested protection from imports, one or more u.s. companies in the industry

victus00 [196]

The main reason is that they thought they could not only successfully battle international rivals, but could gain on weaker domestic competitors that failed to do so. This subject is related to mercantilism and one of the characteristics is the u<span>se of high import barriers and export subsidies. </span>

3 0

3 years ago

If the demand for money is $100 billion and the supply of money is $200 billion, then the interest rate will: fall. rise. remain

Alik [6]

Answer:

fall

Explanation:

The situation above can be best explained by using the "Liquidity Preference Theory." According to the theory when money supply increases (as in the situation above), the interest rate falls. So, this means that many people will be more willing to invest, thereby resulting to a higher income. On the contrary, if the money supply decreases, the interest rate rises. This may temporarily increase the employment condition, however, it can lead to inflation in the long-run.

So, this explains the answer.

7 0

4 years ago