0
What factor of production is represented as interest earned on investments?
Wiki User
∙ 14y ago
capital
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Why is there a difference between interest charged and interest earned?
dnt kno
What is the best description of the gross national product?
the value of all final goods and services produced within a nation in a given year plus income earned by its citizens abroad, minus income earned by foreigners from domestic production
Which of these is the best description of the Gross Domestic Product?
the value of all final goods and services produced within a nation in a given year plus income earned by its citizens abroad, minus income earned by foreigners from domestic production
Why should the interest rate on your savings account be greater than the rate of inflation?
We cannot say that the interest rate on our savings account should be greater than the rate of inflation, but we can say that the interest earned on our overall savings or investments should be greater than the inflation rate. That is because: Let's say you invested Rs. 100 in a bank that gives you 3% interest every year, which means your 100 would have grown to be 103 by the end of the year, but if the country's inflation rate if say 8%, something that was 100 rupees last year would be costing 108 rupees now which means your money has effectively lost its value. That is why we must invest in instruments that give us returns that are alteast greater than the inflation rate.
What does a high times interest earned indicate?
A high Times Interest Earned (TIE) value indicates that the business entity is able to make the interest payments it owes on debt, eg if they took out a loan, the TIE is how much of the Interest from the loan they have earned back from whatever the loan was used to buy or invest in. A high number value indicates that they are earning more than what they must pay back in Interest, which means that the money from the loan was properly used. A high number can also mean the following: a) The business has very little "Leverage", this is undesirable as more leverage from debt is preferable to debt with no leverage. b) The business pays down too much of its debt from its earnings, which means that they are not using their incoming funds to take advantage of investment opportunities that could result in a higher rate of return. This is symptomatic of conservative businesses that do not like to expand, or do not borrow money, float shares or seek outside assistance when financing
This factor of production is represented as intreset earned on investments?
capital
Does interest revenue show on the balance sheet?
Interest revenue is shown in income statment as other income that interest may be earned from investments in other business or governament securities etc.
What is the money earned from investments called?
The money earned from investment is called as return on investment. if you invest in shares then it will be treated as dividend, if it in debentures then it will be known as interest. so different investment reuturns will have different names.
Which of the following is not an example of earned income?
investments
What is the formula for times interest earned ratio?
Times Interest Earned = Operating Income/ Interest Expense.
Interest earned on interest is known as?
Compound Interest
Money earned from which of these is represented as salaries?
Labor
Compound interest is interest paid on interest previously earned?
yes
How is interest different from compound interest?
Simple interest is interest paid on the original principle only, Compound interest is the interest earned not only on the original principal, but also on all interests earned previously.
How does a person use a compounded interest calculator?
Compound interest calculators can be used for both investments and for loans. In the case of investments using the amount invested, time and interest rate you can determine the future value of that money. In the case of loans using the amount of the loan, time, interest rate and payments the total amount of interest paid for the loan (and thus earned by the lender) can be determined. Seeing the numbers in black and white can encourage many people to save more, pay back a loan faster and/or try to find better investment or loan terms.
How much interest is earned on the account?
A $5000 investment at an annual simple interest rate of 4.4% earned as much interest after one year as another investment in an account that earned 5.5% annual simple interest. How much was invested at 5.5%?
Type of interest is calculated by adding the interest earned to the principle?
Compound interest
