Podcast Beta
Questions and Answers
Explain the difference between simple interest and compound interest. Provide an example to illustrate each type of interest calculation.
Simple interest is calculated on the principal amount only, while compound interest is calculated on the initial principal and also on the accumulated interest from previous periods. For example, for a principal amount of $1000, at an interest rate of 5% per annum, simple interest after 2 years would be $100 (1000 * 0.05 * 2), while compound interest would be $102.50 ((1000 * (1 + 0.05)^2) - 1000).
Explain the concept of profit and loss in business, and provide an example of each.
Profit is the financial gain when the revenue from a business exceeds the total cost, while loss occurs when the total cost exceeds the revenue. For example, if a company sells a product for $500 and the total cost incurred is $400, the profit is $100. Conversely, if the total cost incurred is $600, the company incurs a loss of $100.
What is GST (Goods and Services Tax) and how does it impact businesses and consumers?
GST is a consumption tax levied on the supply of goods and services. It impacts businesses by requiring them to collect and remit the tax to the government, and it impacts consumers by increasing the cost of goods and services. Additionally, GST allows businesses to claim input tax credits for the GST paid on their inputs, reducing the overall tax burden.
