When interest is paid on both the principal amount and prior interest earned, this is called:
simple interest
accounting rate of return
the discount factor
compound interest
Simple interest is the interest charged on the principal sum of money for a specified period of time. No interest is charged on interest in case of simple interest but interest is charged only on principal sum
Compound interest is the interest charged every year on the principal sum plus the cumulative interest earned till the beginning of the year on the principal sum. So, in case of compound interest, interest is charged on interest
So, as per above discussion, option D is the correct option
When interest is paid on both the principal amount and prior interest earned, this is called:...
CH5 Interest earned on both the initial principal and the interest reinvested from prior periods is called: Group of answer choices Interest on interest. Compound interest. Dual interest. Simple interest.
Interest earned only on an investment's principal or original amount is referred to as: compound interest discount interest annuity interest simple interest
23) 23) The interest earned on both the initial principal and the interest reinvested from prior periods is called: A) dual interest B) free interest C) interest on interest. D) simple interest. E) compound interest. 24) 24) Which one of the following statements is correct? A) All stocks can be valued using the dividend discount models. B) Stocks can only be assigned one dividend growth rate. C) Preferred stocks generally have variable growth rates. D) Dividend growth rates must be...
Find the missing interest earned. Principal Rate Compounded | Time Final Amount Compound Interest $12256 % quarterly 5 years $1649.90 The amount of compound interest earned is $|| (Round to the nearest cent as needed)
18 is the amount earned on a deposit that has become the part of the principal at the end of a specified time period. O Compound interest Primary interest nFuture value Discount interest
Compare the interest earned by $14,000 for three years at 6% simple interest with interest earned by the same amount for three years at 6% compounded annually Why does a difference occur? Click the icon to view the interest and annuity table for discrete compounding when = 6% per year The simple interest eamed is _ (Round to the nearest dollar.) The compound interest sarned is S . (Round to the nearest dollar.) There is a difference in the amount...
23) 23) The interest earned on both the initial rinnal and the interest reinvested from prior periods is called: A) dual interest B) free interest. C) interest on interest D) simple interest. E) compound interest. 24) 24) Which one of the following statements is correct? A) All stocks can be valued using the dividend discount models. B) Stocks can only be assigned one dividend growth rate. C) Preferred stocks generally have variable growth rates. D) Dividend growth rates must be...
Terms and Definitions The interest rate paid on the face amount of a bond is called the contract rate of interest. The interest rate paid on similar risk bonds is called the market rate of interest. When the contract rate of interest is less than the market rate of interest, the bonds will sell for less than their face value. The difference between the selling price and the face amount of the bonds in this case is called a discount...
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Find how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was earned. 5) 1.9tA= Pert Y= (1. :) - 1 Principal: $3500 Rate: 4.5% Compounded: monthly Time: 4 years amount in account: $4865.38; interest earned: $673.82 amount in account: $4188.85; interest earned: $688.85 amount in...
PLEASE SOLVE ITT Compare the interest earned by $10,000 for four years at 9% simple interest with interest earned by the same amount for four years at 9% compounded annually Why does a difference occur Click the icon to view the interest and annuity table for discrete compounding when 9% per year. The simple interest earned is $ (Round to the nearest dollar.) The compound interest earned is $ (Round to the nearest dollar) There is a difference in the...