Simple Interest
What is the I?
Interest
A = P(1 + r/n)nt
What is a small business called when run be one person?
Sole proprietorship
What is the interest calculated on the principal plus interest accumulated in prior compounding periods, called?
Compound Interest
Mikey will eat anything..
LIFE cereal
r stands for?
Rate
What is the t?
term in years (per annum)
Corporation
The original amount of money borrowed?
Principal
Don't squeeze the ________________.
Charmin
t?
term, per annum
Semi-annual
Quarterly
Monthly
What is a franchise.
Per annum
...for a year
Latin meaning a year.
A diamond is forever.
DeBeers
P??
Principal
You borrow $2 000 at an interest rate of 6.75% for 3 years, semi annually. How much is the interest paid, assuming payment is made at the end of the term?
$494.35
What are the costs required before you open a business?
Start up costs
The point at which business expenses equal sales revenue?
Break-even point
___________, take me away.
Calgon
Solve using the simple interest formula.
You borrow $2 000 from the bank, the interest rate is 6.75% and the term is 3 years. How much is the interest?
$405
What does amortization mean?
An accounting term that is the process of allocating the cost of an intangible asset over a period of time, as interest is accrued over time.
What are costs called that are ongoing and necessary for the running of your business?
Operating Costs
Residual Value
It tastes awful and it works.
Buckley's