Register
4. the interest is computed on the principal and also on the accumulated past interests. a. simple annuity b. compound annuity C. simple interest d. compound interest​
212k views
23 votes
4. the interest is computed on the principal and also on the accumulated past interests.

a. simple annuity b. compound annuity C. simple interest d. compound interest​

User Harry Singh
by
4.5k points

1 Answer

7 votes

Answer:

d. compound interest​

Step-by-step explanation:

Compound interest basically means that previously earned interests will earn interests on their own. For example, you invest $100 and receive a 5% yield. At the end of year 1 you will have $105. At the end of year 2 you will have $105 x 1.05 = $110.25. The $5 in interests previously earned during year 1 will earn $0.25 interest during year 2.

User DrPizza
by
4.6k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.1m questions

6.7m answers

Other Questions

Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Donna's philosophy as she coordinates the marketing efforts is to keep in mind the company's overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with
Brett buys a new cell phone for​ $100. he receives consumer surplus of​ $80 from the purchase. how much does brett value his cell​ phone?
Given the following income elasticities of demand: Product Income elasticity movies +3.4 Dental service +1.0 Clothing +0.5 The values indicate that movies and dental services are normal goods, but clothing
Link Copied!