--%>
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 Debt Financing Debt Financing :

    Debt Financing: Whenever a firm raises money for the working capital or capital expenses by selling bonds, bills, or notes to individual and or institutional investors. In return for lending money, the individuals or institutions become creditors and

    		•
  • Q : Aggregate demand or aggregate supply

    Normal 0 false false

  • Q : What is Feasibility Study Report

    Feasibility Study Report (FSR): This is a document proposing an information technology project which contains analyses of options, cost estimates, and some other information.

    		•
  • Q : Risk from perspective of the Capital

    Discuss risk through the perspective of the Capital Asset Pricing Model (CAPM).The Capital Asset Pricing Model, or CAPM, can be utilized to compute the appropriate required rate of return for an investment project specified its degree of risk as

    		•
  • Q : What is Personal Services Personal

    Personal Services: It is a category of expenditure that comprises such objects of expenditures as the payment of wages and salaries of state employees and employee advantages, comprising the state's contribution to the Public Employees' Retirement Fun

    		•
  • Q : Question on aggregate supply Normal 0

    Normal 0 false false

  • Q : Explain Legislative Information System

    Legislative Information System (LIS): An on-line system formed and employed by the Department of Finance to maintain existing information regarding all bills introduced in the Assembly and Senate for the current 2-year session, and fo

    		•
  • Q : Increased common stock cash dividend

    Do you trust an increased common stock cash dividend can send any signal to the common stockholders? If so, what signal might it send? An increase in cash dividends is frequently seen as a positive signal. A company would be unlikely to raise

    		•
  • Q : Explain the term Balance Available

    Explain the term Balance Available: In regards to a fund, it is the surplus of resources over uses. For budgeting aims, the balance accessible in a fund condition is the carry-in balance, net of any preceding year adjustments, plus revenues and transf

    		•
  • Q : Define Reserve Reserve: The amount of a

    Reserve: The amount of a fund balance set sideways to give for expenditures from the unencumbered balance for ongoing appropriations, future apportionments, and economic uncertainties, pending salary or price raise appropriations, and appropriations f

    		•