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What is compound interest? Compare compound interest to discounting.
Compound interest takes place when interest is earned on interest and on the original principal of an investment. Discounting is the opposite of compounding. Compound interest making the value of a beginning amount to increase at an increasing rate. Discounting makes the present value of a future amount to decrease at an increasing rate.
Q. Define Double-Entry Bookkeeping? Double-Entry Bookkeeping - Method of recording financial transactions in that every transaction is entered in two or more accounts and inclu
functions of stock market in usa
What are the assumptions of MM(Modigliani Miller) approach?
Partial Income Statement Year Ending 2011 Sales Revenue $350,000 COGS $140,000 Fixed Costs $ 43,000 SG&A E
Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of British pound to be $1.49 in a year, so it decides to avoid exchange rate risk
Question 1 What are the total cash inflows for project A? Discount rate (%) NPV of A (Rs.) 0
Role of Government in the Financial Markets Many countries felt that the government should regulate certain aspects of the financial markets. Based on the history and culture o
Effective Duration and Convexity The modified duration is a measure of the sensitivity of a bond's price to interest rate changes; the assumption made here is that the expected
Explain the pricing-to-market phenomenon. Answer: The pricing-to-market abbreviated as PTM refers to the phenomenon that similar securities are priced in a different way for diff
Acquisition (takeover) or merger A merger is the synergy or combination of two companies which are roughly equal in size by consensus of two organisations. A takeover is where
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