The terms “Absorptive Capacity” and “Carrying capaci...
The environment performs four vital functions (i) it supplies resources: resources here include both renewable and non-renewable resources. (ii) it assimilates waste (iii) it sustains life by providing genetic and bio diversity and (iv) it also provides aesthetic services like scenery etc. The environment is able to perform these functions without any interruption as long as the demand on these functions is within its carrying capacity. This implies that the resource extraction is not above the rate of regeneration of the resource and the wastes generated are within the assimilating capacity of the environment.
Absorptive capacity means the ability of the environment to absorb degradation.
The terms “Absorptive Capacity” and “Carrying capaci...
"interest" and "principal" are commonly used in the context of loans and investments.
Interest refers to the additional amount of money that is paid or earned on top of the original amount borrowed or invested. It is typically calculated as a percentage of the principal amount. For example, if you borrow $1,000 with an annual interest rate of 5%, you would owe $50 in interest for the year.
Principal, on the other hand, refers to the original amount of money borrowed or invested. It is the initial sum of money on which interest is calculated. Using the previous example, the principal would be $1,000.
In the context of loans, when a borrower makes a payment, a portion of it is generally allocated towards interest and the remaining portion towards reducing the principal. Over time, as the principal decreases, the amount of interest that is calculated also decreases. This is known as amortization.
In investments, interest is earned on the principal amount. The interest earned can be reinvested or withdrawn, depending on the terms of the investment. The principal amount remains unchanged unless additional funds are invested or withdrawn.
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