Ask Question
BusinessBusiness
9 August, 09:59

3 key concepts of investments

+3
Answers (1)
  1. 9 August, 10:03
    0
    Time Value of the Money : This means that the future value of money is lesser than the present value of the money.

    Compounding effect: this means that once an interest is accumulated on the principal, then the interest earned for the next period earns the additional interest income on the initial principal and the interest. Over time, this effect can increase wealth tremendously.

    Discounting : discounting refers to a selected rate, (that represents the inflation and the cost of capital) used to reduce and adjust the value of future sum or a cash flow to the present value.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “3 key concepts of investments ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A customer owns 100 shares of ABC stock and owns 1 ABC Put option. The customer wishes to sell the stock by exercising the put, but wishes to retain a recently declared cash dividend.
Answers (1)
How is the market for athletes an example of supply and demand,
Answers (1)
Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar A. Cumulative preferred stock B. Callable preferred stock C. Participating preferred stock D.
Answers (1)
Define Red Gross Society.
Answers (1)
Elm Corporation is a merchandising company. The year began with inventory of $23,000, Purchases for the year were $48,000, and the Ending Inventory was $10,000. What is the Cost of Goods Sold that would be reported on the income statement?
Answers (1)
New Questions in Business
Which of the following are characteristics of public goods? Choose one or more: A. Public goods generally have a small value to society. B. The quality of public goods does not diminish when multiple people consume them. C.
Answers (1)
On July 1, 2021, Rents-A-Lot Inc. paid $72,000 for 36 months of advance rent on its warehouse. What would be the amount of rent expense in the 2022 financial statements for Rents-A-Lot under both cash - basis and accrual-basis accounting?
Answers (1)
All the members of the sales team at Arkema are new hires. The team members need to work together to ensure that clients' requirements are fulfilled, and weekly targets set by the company are adequately met.
Answers (1)
After 9/11, the demand for air travel fell substantially, bringing the airline industry to its knees. Congress wanted to compensate the airlines for losses but there was a great debate over how much money was at stake.
Answers (1)
The company sponsors a two-day training meeting for managers and there is a one-hour session on how personality affects employee performance.
Answers (1)
Home » Business » 3 key concepts of investments
Sign Up Forgot Password?