Compound Interest Consists of Interest-On-Interest

question 80

True/False

Compound interest consists of interest-on-interest.

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Definitions:

Gain on Revaluation

An increase in the value of an asset based on current market prices, resulting in a higher estimated worth than its recorded book value.

Estimated Useful Life

The length of time an asset is expected to be usable for its intended purpose, used to calculate depreciation.

Residual Value

The estimated amount that an asset will realize upon its disposal at the end of its useful life, less the cost of disposal, if any.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against an asset since it was acquired.