How Much of Your Investment Income is Actual Earned Interest?
The discount rate is a simple mathematical equation that, when followed correctly, enables someone to determine what percentage of their future value is interest and what percentage is principal. This is done by dividing the current interest rate by the number one plus the current interest rate.
How Should Your Business Approach Dividends?
Once a company comes out ahead and actually makes a profit, it is important to know exactly what to do with those profits in order for the organization to remain profitable and function smoothly. They can choose to either redirect those profits back into the company, which would be known as retained earnings, or pay them out to owners of the firm, with what are called dividends.