--%>
Assignment Help - homework help

Explain compound interest

Explain compound interest? Compare compound interest to discounting.

Compound interest takes place while interest is earned on interest and on the original principal of an investment. Discounting is the opposite process of compounding. Compound interest is reason of the value of a starting amount to rise at an increasing rate. Discounting causes the present value of a future amount to reduce at an increasing rate.

   Related Questions in Finance Basics

  • Q : What is Special Fund for Economic

    Special Fund for Economic Uncertainties: It is a fund in the General Fund (that is, a similar reserve is involved in each special fund) authorized by the statute and Budget Act Control Section 12.30 to offer for emergency situations.

    		•
  • Q : What do you mean by the term Year of

    Year of Appropriation (YOA): It refers to the initial year of an appropriation.

    		•
  • Q : Explain Feasibility Analysis

    Feasibility Analysis: It is an analysis of the ability to finish a project successfully, taking into account legal, technological, economic, scheduling and various other factors. Instead of just diving into a project and hoping for th

    		•
  • Q : Problem on tax and spend at possible

    Normal 0 false false

  • Q : Define the term State Fiscal Year

    Define the term State Fiscal Year: This is the period beginning from July 1 and continuing through the subsequent June 30.

    		•
  • Q : Describe the risk-return relationship

    Describe the risk-return relationship.The relationship among risk and required rate of return is term as the risk–return relationship.  This is a positive relationship since the more risk assumed, the higher the required rate of retur

    		•
  • Q : Mergers encourage the formation of new

    Do mergers encourage the formation of new banks? Yes. The increase in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the similar period. A study conducted through the Federal Reserve Bank of

    		•
  • Q : Why do companies extend trade credit

    Accounts receivable are sometimes not gathered. Why do companies extend trade credit while they could insist on cash for all sales? Extending trade credit approximately leads to more sales for all time. If the incremental cash flows, comprisin

    		•
  • Q : What is Audit Audit : Usually a review

    Audit: Usually a review of financial statements or performance activity (like an agency or program) to establish conformity or compliance with the applicable laws, regulations, and/or standards. The state has three central association

    		•
  • Q : Explain Equity Financing Equity

    Equity Financing: New or small businesses might find it hard to get debt financing therefore they turn to equity funding. The Equity financing frequently comes from non-professional investors like family, friends, or employees. This can as well come f

    		•