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Where does the bank get its money from?
Banks get their money from deposits made by customers, as well as from interest earned on loans and investments.
What are net factor payments?
Net factor payments refer to the difference between the income earned by a country's residents from foreign investments and the income earned by foreign residents from domestic investments. It accounts for the flow of payments for factors of production, such as labor and capital, across borders. A positive net factor payment indicates that a country earns more from its foreign investments than it pays to foreign investors, while a negative value suggests the opposite. This concept is important for understanding a nation's overall economic position in relation to the global economy.
Why is there a difference between interest charged and interest earned?
dnt kno
Why is simple interest useful in financial calculations?
Simple interest is useful in financial calculations because it is easy to understand and calculate. It is based on a fixed percentage of the principal amount, making it straightforward to determine how much interest will be earned or paid over a certain period of time. This makes it a useful tool for budgeting, planning investments, and understanding the cost of borrowing money.
What Yearly return of an event is called?
The yearly return of an event is commonly referred to as the "annual return." This metric represents the percentage change in value of an investment or asset over a year, accounting for factors like dividends or interest earned. It is often used to assess the performance of investments in finance and can be expressed on a nominal or inflation-adjusted basis.
This factor of production is represented as intreset earned on investments?
capital
Where does the bank get its money from?
Banks get their money from deposits made by customers, as well as from interest earned on loans and investments.
How can I use the Google Sheets interest calculator to calculate interest on my investments or loans?
To use the Google Sheets interest calculator, enter the necessary information such as the principal amount, interest rate, compounding frequency, and time period. The calculator will then automatically calculate the interest earned or paid on your investments or loans.
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.
Interest earned or paid on the principal and previously earned or paid interest?
Interest earned or paid on the principal and previously earned or paid interest is known as compound interest. This concept allows interest to accumulate not only on the initial principal amount but also on the interest that has been added to it over time. As a result, compound interest can lead to exponential growth of investments or debts, making it a powerful factor in finance. Understanding this principle is crucial for effective saving and borrowing strategies.
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 difference between simple interest earned and simple interest paid?
Simple interest earned refers to the income generated from investments or savings based on a principal amount, time period, and interest rate, benefiting the investor. In contrast, simple interest paid refers to the cost incurred on borrowed funds, calculated similarly based on the principal amount, time, and interest rate, which the borrower must repay. Essentially, interest earned adds to one's wealth, while interest paid represents an expense. The key difference lies in the perspective of the party involved—investor versus borrower.
Can you explain how compound interest works in stocks?
Compound interest in stocks refers to the process where the interest earned on an investment is added to the principal amount, allowing for the growth of the investment to accelerate over time. As the investment grows, the interest earned also increases, leading to a compounding effect that can result in significant returns over the long term. This compounding effect is a key factor in the growth potential of stock 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
How can compound interest be utilized within a brokerage account to maximize investment growth?
Compound interest can be utilized in a brokerage account by reinvesting the interest earned on investments, allowing the account balance to grow faster over time. This can maximize investment growth by increasing the overall return on the initial investment.
