Would simple interest or compound interest grow a person investment better? Explain.

Answers

Answer 1

Answer:

Compound interest is better.

Explanation:

When it comes to investing, compound interest is better since it allows funds to grow at a faster rate than they would in an account with a simple interest rate. Compound interest comes into play when you're calculating the annual percentage yield. That's the annual rate of return or the annual cost of borrowing money.

Related Questions

Compute the maturity date and interest for the following notes. (Use 360 days for calculation.)
(a) April 17
(b) August 11
(a)
Dates of Notes Terms
45 days
2 months
(b)
Maturity date
June 1
October 11
$
$
Principal Interest Rate
$53,120
79,200
Interest
5%
8%

Answers

The computation of the maturity date and interest for the following notes are:

Notes Maturity Date Interests

a) June 1 $332

b) October 11 $1,056

What is the maturity date of a loan?

The maturity date of a loan is the date the loan or note is due for settlement.

On the maturity date, the note is usually paid with the principal and interest. The interest amount depends on the maturity date, the principal, and the interest rate.

Data and Calculations:

Dates of Notes Terms Maturity date Principal Interest Rate

a) April 17 45 days June 1 $53,120 5%

b) August 11 2 months October 11 79,200 8%

Notes:

A) Interest = $332 ($53,120 x 5% x 45/360)

B) Interest = $1,056 ($79,200 x 8% x 60/360)

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What phase of the product life cycle is the moisturizing black soap shampoo currently have

Answers

The phase of the product life cycle of the moisturizing black soap shampoo is known as the decline stage.

What is decline stage in product life cycle?

Also called the final stage of the product life cycle is when a product sales are dropping because need have diminished because another product innovation has been introduced.

Therefore, the phase of the product life cycle of the moisturizing black soap shampoo is known as the decline stage.

Answers

When making sell or process decisions, management should consider:

Revenue from selling after further processing Revenue from selling as is.

What is process decisions?

process decisions serves as the decisions that is been made by the management so as to achieve the goal of making more profit.

In this case, When making sell or process decisions, management should consider Revenue from selling after further processing to make decisions.

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Answer:

both revenue options and incremental

Explanation:

Brian Burkhardt is planning to purchase a home and expects to borrow $291,400 as a mortgage. He can get a 30-year mortgage at a rate of 4.10%, and his monthly payments will be:

Answers

Brian Burkhardt's monthly payments for this mortgage would be equal to $1,423.92.

How to calculate monthly payment?

Mathematically, the monthly payment for a mortgage can be calculated by using this formula:

[tex]M=P(\frac{r}{1-(1+r)^{-nt}} )[/tex]

Where:

P is the principal.r is the interest rate.M is the monthly payment.t is the time in years.n is the number of times it's compounded.

Note: r = 4.10 = 0.041/12 = 0.0034

Substituting the given parameters into the formula, we have;

[tex]M=291400(\frac{0.0034}{1-(1+0.0034)^{-12\times 30}} )\\\\M=291400(\frac{0.0034}{1-0.3402} )\\\\M=291400(\frac{0.0034}{0.6598} )\\\\M=291400 \times 0.004887[/tex]

M = $1,423.92.

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Outline one market entry strategy and why it is key for global marketers. Comment on one of your classmate's posts with a thoughtful view.

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One market entry strategy that is a key for global marketers is Direct Exporting.

Why is market entry strategy important?

Market entry strategies is needed by the global marketers when they are selling a product in an international market, especially when planning and maintenance processes is needed.

One of this strategies is Direct exporting which entails the selling directly of products with chosen market with respect to own resources.

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8. Suppose the total cost function is as follows: TC= x^3/3 -x^2+11x
Where TC = total cost; x = output (in 1,000 units)
What output would make the average total cost a minimum?

Answers

At 1.5 the average total cost is a minimum and the total cost will be 10.25 where the TC = total cost; x = output (in 1,000 units)

What are maxima and minima?

Maxima and minima of a function are the extremes within the range, in other words, the maximum value of a function at a certain point is called maxima and the minimum value of a function at a certain point is called minima.

We have a total cost function:

TC = x³/3 - x² + 11x

Average total cost:

[tex]\rm F\left(x\right)=\dfrac{\left(\dfrac{x}{3}^3-\:x^2\:+\:11x\right)}{x}[/tex]

Differentiating with respect to x and equating to x

d(F(x))/dx = 0

We will get:

x = 1.5

F'(1.5) > 0

At 1.5 the average total cost is a minimum.

Thus, at 1.5 the average total cost is a minimum and the total cost will be 10.25 where the TC = total cost; x = output (in 1,000 units)

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If the government increases the excise tax on a gallon of gasoline we can expect the supply curve to shift rightward, quantity demanded to fall, and price to rise.

Answers

If the government raises the excise tax of the product then supply curve tends to shift leftwards. Therefore, The above statement is false.

What is Supply Curve?

The supply curve refers to the graphical representation of the supply and the prices of the commodity. It tells how the supply of the commodity affects the prices of the product.

The complete question is attached below.

According to the above situation, when government increases the taxes of the gallon of gasoline then the supply curve will shift leftwards as the supply decreases.

It will lead to the increment in the level of the prices as the demand of the product will fall. Therefore, the above statement is false.

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an example of a disincentive?

Answers

Answer:

Failing to have the incentive you once had; to take the incentive, the stimulus, the spirit from something, from someone or from oneself; discourage, discourage:

"Excessive taxes disincentive trade."

"In the face of so many problems, he became disincentived."

Hope I helped you, good studies!

E
Which is considered an administrative penalty that may be imposed by the ABC for violations?
O a. jail time
O b. restitution to victims
O c. imposition of license conditions
O d. community service
NEXT PAGE

Answers

Answer:

c is correct on

Explanation:

Option C. imposition of license conditions. is considered an administrative penalty that may be imposed by the ABC for violations.

What is an ABC violation?

These are the violations that have to do with the fact that alcohol is sold to people that are considered as minors in the United States.

The violations may carry punishments such as jail time or it may require hours of community service.

Answers

Gabagu because arbitration loves italics

Banks that offer low interest rates to people with good credit

maximize profits at little risk.
sacrifice profits for less risk.
maximize profits at great risk.
sacrifice profits for more risk.

Answers

Banks that offer low interest rates to people with good credit :sacrifice profits for less risk.

What is interest rate?

Interest rate can be defined as the rate a bank or a lender add to the money they lend to a borrower.

Banks tend offers low interest rate to customers with good credit tend to sacrifice the profits they are suppose to gain for less risk because they believe the customers will payback.

Therefore the correct option is B.

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Current Attempt in Progress
Marin Company purchased a truck for $74,100. The company expected the truck to last four years or 100,000 miles, with an estimated
residual value of $6,600 at the end of that time. During the second year, the truck was driven 26,000 miles.
Compute the depreciation for the second year under each of the methods below.
Units-of-activity
Double-declining-balance
eTextbook and Media
Save for Later
$
$
Assistance Used
Attempts: 0 of 3 used
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Answers

The depreciation for the second year under Double-declining-balance is:$18,525.

Depreciation

First year

Year 1 depreciation=$74,100×(1/4×2)

Year 1 depreciation= 37,050

Second year

Year 2 depreciation=($74,100-$37,050)×(1/4×2)

Year 2 depreciation=$37,050×(1/4×2)

Year 2 depreciation= $18,525

Therefore the depreciation for the second year under Double-declining-balance is:$18,525.

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If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity?

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When a bond is trading at a premium, then the coupon rate is higher than the current yield and the yield to maturity.

How does a bond trade at premium?

For a bond to trade at premium, the coupon rate would have to be higher than the yield to maturity and the current yield.

Such a bond would trade at premium because the present value of the bond would be more than the par value thanks to the coupon being larger than the discount rate which is the yield to maturity.

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Which of the following is NOT a reason why strategy matters to businesses?
Strategy defines a company’s current and future goals and objectives
Tying financial models to strategies of a business helps generate more insightful analyses
Understanding a company’s strategies allows financial analysts to make reasonable assumptions in performing forecasting
Having a strategic plan helps reduce uncertainty about the future and prepare to explore new opportunities

Answers

A, strategy does not define those

There are other reasons that strategy matters in business, but tying financial models to business strategies does not help to generate more insightful analyses. Option B is correct.

Why the strategies are important for the business?

Strategy assistance us in shaping our business by furnishing it with a set of values and a sense of purpose. It enables us to comprehend what success entails.

A company's strategy defines its underway and upcoming ends. It is used in to enables financial analysts to make common, sensible forecasting assumptions.

Therefore, option B is correct.

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Based on the following data, what is the amount of working capital?

Accounts payable $65280
Accounts receivable 116280
Cash 71400
Intangible assets 102000
Inventory 140760
Long-term investments 163200
Long-term liabilities 204000
Short-term investments 81600
Notes payable (short-term) 57120
Property, plant, and equipment 1366800
Prepaid insurance 2040

$377400

$332520

$289680

$338640

Answers

Based on the given figures on the assets and the liabilities of the company, the working capital is $289,680.

What is the working capital?

This can be found as:
= Current assets - Current liabilities

= ( Inventory + Cash + Accounts receovebale + Prepaid insurance + Short-term investments) - ( Accounts payable + Notes payable (short-term)

Solving gives:

= (140,760 + 71,400 + 116,280 + 2,040 + 81,600) - (65,280 + 57,120)

= $289,680

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Scenario: Tara complains that she cannot seem to get ahead financially. She believes that all expenses, such as her cell phone bill, car payment, gym membership, and subscriptions to magazines are absolutely necessary. Task: Write a paragraph below, persuading Tara to change her financial approach and explain how to do this. The paragraph should address the importance of sound financial goals, budget, and fixed as well as variable expenses.

Answers

For Tara to make progress financially, she must plan her personal budget, organizing her expenses and identifying her financial goals.

What is the personal budget?

It is a simple and easy-to-do financial planning tool, where the individual organizes their expenses in a spreadsheet for better visualization, forecasting and organization of expenses, allowing planning to achieve financial balance.

Therefore, through the knowledge of your fixed and variable expenses, there is a greater possibility of balance between what you earn and what you spend, for the allocation of resources for short and long-term financial objectives and goals.

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Using an ICD-10-CM code book, assign code(s) for the following diagnosis: Alcohol induced delirium tremens

Answers

The ICD 10-CM code for Alcohol induced delirium tremens is F10. 921.

What is ICD 10-CM?

It should be noted that ICD 10-CM simply refers to the international classification of diseases.

In this case, the ICD 10-CM code for Alcohol induced delirium tremens is F10. 921.

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A company's marketing mechanism is deemed successful only if

Answers

It attracts new customers and gets positive response.
Good marketing attracts more customers, more customers means more profit deeming it to be successful.

A company's marketing mechanism is deemed successful only if it attracts new customers and gets positive responses. An essential component of business operations is marketing research.

It can assist businesses in making decisions on what things to create, how to price their goods, and the best marketing strategies.

However, it can take a lot of time and effort to perform marketing research. A methodical approach to information collection, analysis, and reporting that supports firms in their marketing decisions is known as marketing research.

Identification and comprehension of client requirements and preferences are the goals of marketing research, which enables businesses to develop goods and services that meet those needs and preferences. Typically, marketing research entails surveys, focus groups, interviews, or customer observation.

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Which of the following is NOT a feature in the Formulas menu of the Macabacus Excel add-in? Review Later Summary Statistics Error Wrap Quick CAGR Formula Flow

Answers

The following that is NOT a feature in the Formulas menu of the Macabacus Excel add-in is Formula Flow. This is further explained below.

What is Formula Flow?

Generally, The formula for the volumetric flow rate is as follows: Vf = A*v, where A is the cross-sectional area and v is the flow velocity.

In conclusion, Macabacus is an Excel add-in that has many useful features, but Formula Flow is not one of them.

Answers

The expected return for stock A and B is 8.55% and 15.11% respectively.

What is the Expected return?

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

= 8.55%

Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

= 15.11%

Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.

Answers

The cost of credit for this loan is $134.97.

What is the cost of credit?

The cost of credit represents the difference between the total payments made and the original mortgage value.

It is also called the finance charge.

Data and Calculations:

Purchase price = $1,261.60

Sales tax = 7% or $88.31 ($1,261.60)

Monthly instalment = $123.74

Payment period = 12 months

Total payment for 12 months = $1,484.88 ($123.74 x 12)

Cost of credit = $134.97 ($1,484.88 - $1,261.60 - $88.31)

Thus, the cost of credit for this loan is $134.97.

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Lightfoot Inc., a software development firm, has stock outstanding as follows: 25,000
shares of cumulative preferred 4% stock, $20 par, and 31,000 shares of $100 par
common. During its first four years of operations, the following amounts were
distributed as dividends: first year, $7,500; second year, $12,500; third year,
$68,210; fourth year, $115,790.
Calculate the dividends per share on each class of stock for each of the four years.
Round all answers to two decimal places. If no dividends are paid in a given year,
enter "0".
Preferred stock (dividend per share)
1st year, 2nd year, 3rd year, 4th year

Common stock

1st year, 2nd year, 3rd year, 4th year

Answers

Preferred stock:

Year 1=$0.30

Year 2=$0.50

Year 3=$1.60

Year 4=$0.80

Common stock

Year 1=$0.00

Year 2=$0.00

Year 3=$0.91

Year 4=$3.09

How do we compute dividend per share?

The requirement is to compute dividend per share(total dividends divided by shares outstanding) for both preferred stocks and equity shares.

The cumulative preferred stock means that the future dividends would include dividends unpaid in the earlier years.

Annual dividend for preferred stock=number of shares*par value*dividend rate

number of shares=25,000

par value=$20

dividend rate=4%

annual dividend for preferred stock=25,000*$20*4%

annual dividend for preferred stock=$20,000

In year 1, all of the dividends,$7,500 would be paid to cumulative preferred stockholders, which leaves a balance of $12,500 to be paid in future years

In year 2, the dividend payable to cumulative preferred stocks is the arrears of $12,500 plus the $20,000 for year 2 i.e. $32,500

The fact that only $12,500 was paid means that the unpaid cumulative dividends at the end of year 2 are $20,000( i.e. $32,500-$12,500)

In year 3, the arrears of $20,000 for cumulative preferred stocks and the $20,000 dividends for the current year would be paid together since the amount of dividends declared is $68,210

equity dividends=total dividends-cumulative preferred stocks' dividends

equity dividends=$68,210-$40,000

equity dividends=$28,210

In year 4, out of the dividends of $115,790, only $20,000 is due to preferred stockholders as annual dividends as there are no arrears of dividends

Equity dividends=$115,790-$20,000

equity dividends=$95,790

Note that dividend per share is total dividends divided by shares

Preferred stock:

Year Total dividends Shares Dividend per share

1 $7,500 25000 $0.30

2 $12,500 25000 $0.50

3 $40,000 25000 $1.60

4 $20,000 25000 $0.80

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Merits of suppliers pre qualification

Answers

Answer:

. Digital prequalification process and forms

. Centralized data for easy accessibility and reporting

. Knowing beforehand which suppliers meet your requirements

. Peace of mind the supplier you hire is qualified and safe to perform the work assigned

. Improved workflow

Your analyst team has received a request for system development that focuses on moving the current system into a new operating environment that is more flexible with regard to emerging technologies. What key source of system development requests is likely to have generated this one?
A. Managers and business units
B. Regulatory agencies
C. Formal planning groups
D. Information system managers

Answers

The key source of the development requests likely to be generated to Information system managers. Therefore the correct option is (D).

What is Information System Management?

The Information system of Management refers to the management of the data, facts, figures or information of the system in the computer by the organizations.

According to the above scenario, The system development team is focusing on the adopting the operating environment system which is adopted by the Information system managers

Therefore the correct option is (D).

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What would happen if manufacturing were to stop everywhere? no one would import the products we use. no one would import the products we use. no one would transport the items we use. no one would transport the items we use. no one would produce the items we use every day. no one would produce the items we use every day.

Answers

Answer:

There would be economic breakdown.

Explanation:

Because all the factors listed are factors that boosts the economy of a country.If they're not there,there might be a breakdown

You have learned concepts: 1) Histogram, 2) Pareto Analysis, 3) Cause and Effect Diagram and 4) Control Impact Matrix from watching the video. Explain how you can apply concepts 1, 2, 3, and 4 by using a real-world example (it can be a problem that you have, had encountered, or make up a scenario.). Save your work in a pdf file. Click on the assignment link below to upload your work via attachment (zero points for non-pdf file). Assignment worth 20 pt. Due: by the posted deadline per course calendar.

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An example of real-world cases where Histogram, Pareto Analysis and others mentioned tools in the question can be used is A Report from Microsoft which states that " that of 80% Crashes that occurs in Windows is due to the 0.4 part of the detected bugs in the whole system .

What are the usefulness of the tools like Histogram, Pareto Analysis?

Pareto analysis serves as one that stand on the premised that to achieve the benefit worth 80% of a project, one would need to do at least the 20% of the work.

Histogram on the other hand is a graphing tool which is s tool like impact matrix and can be used to give the summary of a data.

Hence, with the above tools , some of real word problems can be analyzed.

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How do I calculate inflation?

Answers

We can calculate the total inflation rate in an easily understandable manner. The total inflation rate is the total rate of change of the consumer price index (CPI) over a certain given period of time.

What is inflation?

A general increase in the prices of goods and services in an economy can be called Inflation. Whenever the general price level rises, each unit of currency purchases fewer goods and services; simultaneously, inflation accords to a reduction in the purchasing power of money.

The total inflation is calculated using this given formula:

((Target Year – Base Year) ÷ Base Year) x 100

Thus, the Total inflation rate refers to the total rate of change of the consumer price index (CPI) over a certain given period of time.

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Mr. Fitzgerald is selling his home to permanently move into a retirement facility near his daughter in a neighboring state before the Annual Election Period. He has a stand-alone prescription drug plan and has learned it is not available where he is moving. He doesn’t know what he should do. What can you tell him?

Answers

"Mr. Fitzgerald is selling his home to permanently move into a retirement" He must be automatically dropped from the plan because he is relocating outside of the service region. He will be able to choose a new plan during a special election term. This is further explained below.

What is prescription drug plan?

Generally, Prescription drug plans (PDPs) are another name for Medicare Part D. These policies are available on their own from private insurance providers.

In conclusion, He must be automatically dropped from the plan because he is relocating outside of the service region. He will be able to choose a new plan during a special election term.

Answers

An example of investing activity the purchase of machinery.

What is an investing activity?

Investing activities is when long term business assets are purchased and sold the within a specific reporting period.

Investing activities include:

1. Purchase or acquisition of assets to be used in the production process.

2. Sale of business assets

3. Acquisition or sale of other business

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You tell Julia you already know a bit about leadership styles, and you think you have traits that will make you a good leader.

More than a particular leadership style, you'd like to consistently demonstrate responsible leadership.

Authentic leader
Servant leader
Ethical leader

Answers

Option B. The type of leadership that you would have to demonstrate would be the servant leadership if you want to show you are a responsible leader.

Who is a servant leader?

This is the type of leader that is very interested in the growth and in the well being of their disciples and that of the community that they find themselves.

This would be the type of leadership that this individual would love to demonstrate.