A department store charges 1.5% interest per month, compounded continuously, on its customers’ charge accounts. What is the nominal annual interest rate? What is the effective interest rate?

Q: A person pays interest on a loan daily at a nominal annual interest rate of 16%. What is most nearly…

A: Effective annual interest rate (EAR) formula: EAR=1+RMM-1 where, R= nominal interest rate m =…

Q: A local store charges 11/2% each month on the unpaid balance for its charge account. What nominal…

A: Nominal rate is the annual percentage rate for given number of compounding periods. Effective annual…

Q: The Men's Store charges 1.25 percent interest per month. What is the effective annual rate?

A: Every business firm suffers from the scarcity of funds. There are several investment…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate= Prime rate +4% = 8% + 4%= 12% Interest is calculated for the number of days on…

Q: Vandermark Credit Corp. wants to earn an effective annual return on its consumer loans of 15.25…

A: Effective annual rate = [1+Annual Rate/365]^365 - 1

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Prime rate The current interest rate charged by the financial institution to its customers is known…

Q: What will be the total interest earned on a 6%, $2,000 note receivable that is due in nine months?

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: If $1 million face amount of commercial paper(270 day paper) is sold for $982,500, what is the…

A: Calculating the value of simple rate of interest paid on commercial paper. We have,Face value of…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Cook security systems has line of credit = $37500 Annual charge rate = 4% On October 1, Opening…

Q: A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 14 days using…

A: Interest Amount = Principal * Rate * Time

Q: Big Dom’s Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…

A: APR = given monthly rate * 12 months

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate applicable = Prime rate + premium Interest will be charge when the line of credit…

Q: You are paying an effective annual rate of 15.33 percent on your credit card. The interest is…

A: Calculation of annual Percentage of rate is shown below:

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: New balance  = balance  on 31 October  + interest

Q: while at the bank, you see a brochure with two saving account options. One pays interest at 4.35%…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Assume you have a balance of $1000 on a credit card with an APR of 24%, or 2% per month You start…

A: By using credit cards, people usually spend more money and people who actually pay their credit…

Q: The pawn shop adds 2 percent to loan balances for every two weeks a loan is outstanding. What is the…

A: Given. Pawn Shops Adds  2%   to loan balances for every two weeks here interest is adding to the…

Q: A department store has offered you a credit card that charges interest at 1.75% per month compounded…

A: Computation:

Q: calculate the monthly finance charge for the credit card transaction. Know that it takes 10 days for…

A: There are various method in which the interest on credit card is charges such as previous balance,…

Q: Radio Shack offers credit to its customers and charges interest of 1.2 percent per month. What is…

A: In the given question we require to calculate the Annual Percentage rate if the per month interest…

Q: Your bank account compounds interest monthly and has an annual percentage rate of 24 percent. What…

A: When the effects of compounding over time are considered, the effective annual interest rate is the…

Q: you recieve a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: The nominal rate of interest is the rate that is free from the compounding effect. it is also known…

Q: Assume you have a balance of $1200 on a credit card with an APR of 24%, or 2% per month. You start…

A:

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Average daily balance is the average of the monthly expenses   Date No of days Balance…

Q: Big Dom's Pawn Shop charges an interest rate of 25.5 percent per month on loans to its customers.…

A: APR refers to the annual percentage return it is calculated by multiplying the periodic rate to the…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate will be equal to addition of current prime rate plus annual percentage rate. = 8% + 4%…

Q: You are paying an effective annual rate of 8.974 percent on your credit card. The interest is…

A: Answer  Effective Rate = (1 + Nominal Rate / n)n - 1 effective annual rate = 8.974% Number of…

Q: If a credit card charges 1½% interest every month, what are the nominal and effective interest rates…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: A firm charges its credit customers 1.67% interest per month. What is the effective interest rate?

A: Effective interest rate is the real return on savings account. It is given as: R = 1+inn-1

Q: A bank is advertising 15% accounts that yield 15.60% annually. How often is the interest compounded?…

A: Effective annual rate basically is the real rate that we get on an investment or we pay on a loan.…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Line of credit (LOC) can be defined as the prespecified of money that can be borrowed from a lender…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Line of credit is service which is provided by bank or financial body to customer or business to…

Q: You’re prepared to make monthly payments of $190, beginning at the end of this month, into an…

A: NPER is the number of payments required to make to have an account balance 10,000 in future. Given:…

Q: The annual interest rate on a credit card is 16.99%. If a payment of $400.00 is made each month, how…

A: Credit Card is short-term debt instrument which allows cardholder to make credit purchases and make…

Q: A local store charges 1½% each month on the unpaid balance for its charge account. What nominal…

A: Interest is an additional amount which is received over the deposited amount. At maturity, depositor…

Q: The Little Red-Haired Girl makes quarterly deposits into an account paying an effective interest…

A: If the little Red- Haired girl and start with $4,200.00 in a savings account earning a 14%(3.5×12)…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Loan is a value which is borrowed from the sources like bank and amount repaid later with and extra…

Q: A company uses services with charges that total $10,000 per month. The earnings credit rate is 5%.…

A: The conceptual formula used:

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest on Line of credit is based on the opening balance of the period before the balance is…

Q: A​ washer-dryer combination can be purchased from a department store by making monthly credit card…

A: For calculation of purchase price we need to use the following formula of annuity due PV of annuity…

Q: a credit card has a 30-day billing period, a 20-day grace period, and charges an interest rate of…

A: In this case, we use the average daily balance method to calculate the interest charged. It is one…

Q: the annual interest rate on a credit card is 12.99%. If a payment of $300.00 is made each month ,how…

A: Unpaid balance (PV) = $2446.16 Interest rate = 12.99% Monthly interest rate (r) = 12.99%/12 =…

Q: A store charges 2% per month to its customers.find the effective annual rate.

A: Given: Monthly interest rate = 2%

Q: cool security systems has $37,500 line of credit , which charges an annual percentage rate of prime…

A: The closing balance can be calculated as follows :

Q: Your local pawn shop loans money at an annual rate of 23 percent and compounds interest weekly. What…

A: Formulas: Actual annual rate of interest = (1 + Weekly rate)^No. of weeks - 1 Note: Number of weeks…

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.