Simple and compound interest-present value concept

Reference no: EM1329169

1. Can you explain the difference between "simple" and "compound" interest? Please provide some of the uses of compound interest in business.
I also need to know the effects of using compound interest when evaluating future value transactions and calculations.

2. What is "present value"? What is an example of the "present value" concept? How does a single cash flow present valueexample differ from an annuity calculation?

3. How is a home mortgage an example of TVM? How can you show that more interest is paid at the beginning of a loan period than at the end?

Reference no: EM1329169

Questions Cloud

Examine the effects of customer demands : Analyze the effects of customer demands on suppliers and Define various ways customers may prepare for supply interruptions or changes

Compute the implied arc income elasticity of demand : Compute the implied arc income elasticity of demand. Holding all else equal, would a further increase in price result in higher or lower total revenue.

Explaining the terroristic threats : Does the threat of terrorism in the US justify the imposition of limits on the right to privacy?

Find the four small business opportunities : What are four small business opportunities that need to be considered when starting a new business.

Simple and compound interest-present value concept : What is "present value"? What is an example of the "present value" concept? How does single cash flow present valueexample differ from an annuity computation?

Explain e-commerce security : Explain E-Commerce Security and what are some control measures business are putting into place to minimize the risk of hacker attacks

What is the multicast : examine and discuss what the UDP does and its relationship to TCP - - - in what ways is it similar and different, and why (what applications) would we use UDP, and why can't a user program access IP directly.

Relationship between emotional intelligence and leaders : What is the relationship between emotional intelligence (EI) and leadership?

The exponential smoothing method : The future can be forecasted using the exponential smoothing method if you know the most recent forecast and alpha.

User Account

All Pages