Question

- How do simple and compound interest differ?
- What is the difference between an ordinary annuity and annuity due?
- Why is time value a relevant consideration in accounting?
- What are some areas of accounting where time value comes into play?

Answer #1

Simple interest is calculated on the principal, or original, amount of a loan. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as "interest on interest."

An annuity is a series of payments at a regular interval, such as weekly, monthly or yearly. ... The payments in an ordinary annuity occur at the end of each period. In contrast, an annuity due features payments occurring at the beginning of each period.

The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future. ... Provided money can earn interest, this core principle of finance holds that any amount of money is worth more the sooner it is received

“How do you find the future value of an ordinary annuity
using the simple interest formula method?”

Investment Payback Calculation
Submit written responses to these questions.
What is the difference between simple interest and compound
interest?
What is the future value of $10,000 with an interest rate of 16
percent and one annual period of compounding? With an annual
interest rate of 16 percent and two semiannual periods of
compounding? With an annual interest rate of 16 percent and four
quarterly periods of compounding?
What is the relationship between the present value factor and
future value factor?...

What is the difference between simple interest and compound
interest? Illustrate your answer. Which one will you prefer as an
investor.

An ordinary annuity has an interest rate of 10% and a future
value of 80.00. What would be the future value of this same
annuity, if it were an annuity due instead of a regular annuity?
The future value of this annuity due is $

What is the future value of a 12-year ordinary annuity of $350
if the interest rate is 6.5%? What is the present value of the
annuity? Hint: Solve for PV. What is the future value and present
value if the annuity were an annuity due?

A.)How much do you need to invest semiannually into an ordinary
annuity earning an annual interest rate of 7.12% compounded
semiannually so that you will have $5,953.19 after 7 years?
B.) If you make quarterly deposits of $309.00 into an ordinary
annuity earning an annual interest rate of 5.74%, how much will be
in the account after 15 years? How much interest did you earn in
those 15 years?

What is the difference between a simple magnification system and
a compound magnification system? What are the differences between a
real image and a virtual image?
thanks !

SIMPLE INTEREST:
1. How much is the amount and simple accumulated interest of $
16,750, to 10.75% for five years and seven months?
2. Find the difference between exact simple interest and
ordinary simple interest when calculating $ 35,600 to 77 7/8% for
180 days?
3. If you deposited $ 31,740 at what%, would you accumulate an
amount of $ 61,000 in seven years?
II. COMPOUND INTEREST:
1. Find the amount and compound interest from $ 21,760 to 71⁄4%
for...

Define ordinary differential equations and partial differential
equations. How do they differ? What are the most important aspects
of each?

What is the difference between an outbreak and an
epidemic and how would investigations differ?

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