Simple Interest Usually Is Computed on an Annual Basis but It

question 95

True/False

Simple interest usually is computed on an annual basis but it can also be compounded semi-annually, quarterly, or even daily.

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Definitions:

Switch Break-Even Point

This term refers to the point at which the cost savings or revenue from changing a system or product equals the costs associated with the change.

Variable Cost

Charges that fluctuate according to the volume of production.

Monthly Interest Rate

The interest rate for a period of one month, often used to calculate the interest on loans and financial products on a monthly basis.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.