What is interest on interest, and why is it such an important element of return?
Note that because the bond was originally bought at par ($1,000), you start off with a 4 percent investment. Where you end up depends, in large part, on what you do with the interest earnings from this investment. If you don't reinvest the interest income at the original 4 percent, then you could end up at the 3 percent line—or even lower. You have to earn interest on interest from your investments in order to move to the 4 percent line.
You might also like to view...
______ result from choices that companies have to make between doing what is right and doing what is good for business.
A. Sustainability questions B. Ethical dilemmas C. Cultural issues D. Legal issues
What are the goals of a speech of presentation?
What will be an ideal response?
A gun manufacturer in Helena, Montana agrees to sell guns and ammunition to the ATF in Washington, D.C. The terms of the contract specify that the goods are to be shipped "FOB, Chicago." When does the buyer acquire title and risk of loss?
a. When the goods reach Chicago. b. When the goods are delivered to the carrier in Montana. c. When the goods are tendered in Washington D.C. by the carrier. d. When the goods reach Washington D.C.
In Clackamas Gastroenterology Associates, P.C. v Wells, the court discussed whether managing directors or physician-shareholders of professional corporations are employees for the purposes of determining coverage under:?
A) ?disparate impact B) ?content validity. C) ?construct validity. D) ?Title VII.