Define simple interest and compound interest

Reference no: EM1351315

1. Discuss and explain simple interest and compound interest. Explain the difference between each.

2. Define annual percentage rate (APR). What effect does frequency of compounding have on the annual percentage yield (APY)? What condition would exist if the APR = APY?

3. What is an ordinary annuity? What is an annuity due? Which is more prevalent in apartment leases?

4. A very smart child understands annuities and wishes to invest part of his allowance each week to save up for college. The child's parents figure, they would kick in with matching funds, so each month, he deposits a total of $50. Let us suppose that the child continues from age 5 to age 20. Given a fixed APR of 5%, what might the child expect to have at age 20?

5. What is an example of an installment loan? What type of installment loan does not require the borrower to pay off the balance?

6. Explain the difference between a fixed rate and adjustable rate mortgage.

Reference no: EM1351315

Questions Cloud

Prepare new income statements : Income statements for three companies are provided below: Make new income statements for companies assuming each sells one unit less

Explain the goal of a portfolio in terms of risk and return : Discuss and explain the goal of a portfolio owner in terms of risk and return. How does he or she evaluate the risk characteristics of stocks considered for addition to portfolio?

Profitability ratios & efficiency levels : Make a short description comparing Sirius Satellite Radio and XM Satellite Radios recent fiscal years statements based on the profitability ratios and efficiency levels.

Variability of the returns : If variability of the returns on big corporation stocks were to rise over the long term you would expect which of the following to occur as a result.

Define simple interest and compound interest : Discuss and explain simple interest and compound interest. Describe the difference between each.

Manager of a cost center : If I run a call center for a software firm whose sole purpose in life involves assistng the customers install the item,

Select the best method for the company : Phoenix Corporation requires $500,000 to finance its growth and it approached a venture capitalist company to fund its future growth in business.

Problem on commercial law : Discuss whether Ellen has a claim against the council in relation to the advice she received- Ellen is a graduate of The College of Alternative Medicine and is looking to start her own business

Diverse measurement techniques : why is measurement in the context of accounting so important and why has measurement become such a controversial accounting issues in recent times?

User Account

All Pages