answersLogoWhite

0

What else can I help you with?

Continue Learning about Math & Arithmetic

Would the statement 'Simple Interest is interest earned on interest' be True or False?

False. Interest upon interest is compounded interest


What is a simple interest in math?

Simple interest is interest that is calculated only on the amount of unpaid principal on a loan. Such interest is not added to the value of the loan but is tracked separately. Compound interest is interest that is calculated on the total of unpaid principal and accumulated interest on a loan. The difference is in simple interest there is no interest charged on accumulated interest while in compound interest there is interest charged on accumulated interest.


What is better for the consumer simple interest or compounded daily?

I'm thinking of bonds when answering this question. The more frequent the compounding the better it will be for the lender. The less frequent the compounding the better it will be for the borrower. Lets use this example: Interest = 10% Principle = $1000 Compounding A = Annually Compounding B = Quarterly Time period = 2 years A) At the end of the first year $100 in interest would have been made making the balance $1100. At the end of the second year $110 would be earned because of compounding and the balance would be $1210. B) At the end of the first year $103.81 in interest would have been earned with a ending balance of $1103.81. At the end of the second year the interest earned would be $114.59 and the ending balance would be $1218.40. What I showed here is that if you are the one receiving the interest you would prefer daily compounding. When you're paying out interest you would prefer simple interest.


What is a foot fetisb?

A foot fetish is a sexual attraction or interest in feet, which can include various aspects such as their appearance, shape, or even the sensations associated with touching or being touched by feet. This type of fetish is considered one of the most common forms of sexual fetishism. Individuals with a foot fetish may find pleasure in activities like foot massages, shoe play, or worshipping feet. It's important to note that such preferences are part of a diverse range of human sexuality and can vary widely among individuals.


Interest earned on interest is known as?

Compound Interest