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A simple interest calculation provides a useful estimate of what compound interest will be if it is valued. This is taught in math.

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Which form of interest provides the greater return?

Compound interest typically provides a greater return than simple interest. While simple interest is calculated only on the principal amount, compound interest is calculated on both the principal and any interest that has been added to it, allowing for exponential growth over time. The more frequently interest is compounded, the greater the total return. Therefore, for long-term investments, compound interest is generally the more advantageous option.


Advantages of using simple interest?

Using simple interest offers several advantages, including ease of calculation, as it involves a straightforward formula based on the principal amount, interest rate, and time period. It provides clarity on how much interest will be earned or owed, making it easier for borrowers and investors to understand their financial obligations. Additionally, simple interest can be beneficial for short-term loans, as it typically results in lower overall interest costs compared to compound interest in similar scenarios. This simplicity can also aid in budgeting and financial planning.


You deposit 400 in a bank that provides 5 compound interest yearly and you make no additional deposits. At the end of five years your balance is?

$510.51 ;)


If you deposit 400 in a bank that provides 5 compound interest yearly and you make no additional deposits at the end of five years your balance is?

$510.51 ;)


The annual interest rate for a loan is 14 percent how much interest is due on a loan of 720.000 in one year?

Simple interest of $100.80 is due when borrowing the $720.00 for a year. The following formula provides the calculation necessary: SimpleInterest = Principal * AnnualInterestRate So, for the above question: SimpleInterest = $720.00 * 14% = $720.00 * 0.14 = $100.80


What would you need to use the Rule of 72?

To use the Rule of 72, you need two key pieces of information: the expected annual rate of return on an investment and the target number of years you want to double your investment. You simply divide 72 by the annual rate of return to estimate how many years it will take for your investment to double. This rule provides a quick mental calculation for understanding the effects of compound interest.


What are the interest rates on credit card?

Interest Rates on credit cards, comes from banks or credit union that provides to the consumer borrowed money, this over a period of time that the money is borrowed. When the consumer has not paid back the borrowed money in the time that was agreed, then occur a calculation of the interest base on the credit of the consumer ( or card holder) and this represent the bankers profit. Interest rates can vary from 7 to 35%. This Interest Rate is an annually basis or APR and this fee is for the privilege of borrowing money


The compound that provides energy to living organisms?

The compound that provides energy to living things is known as ATP (adenosine tri-phosphate), this compound is formed in the mitochondria of cells


Why is it important to add minority interest to enterprise value?

Adding minority interest to enterprise value is important because it provides a more accurate representation of the company's total value. Minority interest represents the portion of a subsidiary that is not owned by the parent company, and including it in the enterprise value calculation ensures that all stakeholders are accounted for. This can lead to better decision-making and a more comprehensive understanding of the company's financial health.


What compound directly provides for cellular work?

ATP ATP


What compound provides the carbon needed to synthesize glucose?

Carbon dioxide provides the carbon needed to synthesize glucose.


How do you calculate gram equivalent weight.?

Gram equivalent weight is calculated by dividing the molar mass of the compound by the number of equivalents of the species involved in the reaction. It is a measure of the mass of a substance that provides one equivalent of the species of interest in a chemical reaction.