How can we calculate the total annual interest payment for a credit card debt of $ 1,000?
Q: Suppose your credit card issuer states that it charges a 24.00% nominal annual rate, but you must…
A: Effective Annual Rate(EAR) = [(1+ nominal rate/n)^n]-1 where, n = compounding period
Q: Your monthly statement from your bank credit card shows that the monthly rate of interest is 1.5%.…
A: Given details are : Monthly rate of interest = 1.5% We require to compute the annual effective rate…
Q: 2. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…
A: Solution Concept Simple interest rate is the rate that does not have the effect of compounding To…
Q: If you deposited P1,000 a couple of years ago in a bank that pays the interest bimonthly. After…
A: The effective rate implies for percentage figure which shows proportion of increase that will occur…
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Charges that must be paid in order to avail of the credit card services are referred to as finance…
Q: If you sign a discount note for $4,400 at a bank discount rate of 8%, for 90 days, what is the…
A: Effective annual rate is defined as the actual rate that is earned on the investment. It shows the…
Q: Your credit card company charges you 21.3% APR (annual percentage rate). If they calculate interest…
A: 1. Given: APR = 21.3% Interest calcualtion: Monthly To calculate: Periodic Interest Rate
Q: Determine the interest rate earned on a $1,500 deposit when $1,680 is paid back in one year.
A: Details given are : Present value of deposit = $1500 Future value of deposit = $1680 Time period = 1…
Q: How to adjust this Accrued interest on loans payable 18,000
A: Accrued Interest: According to accounting principles, accumulated interest refers to the amount of…
Q: deposited in a bank that pays 6% interest, how large must your annual deposit be?
A: Information Provided: Present value = $3000 Future value = $15,000 Term = 10 years Interest rate =…
Q: Suppose a person has a total credit card debt of $1.375 that has a 12% yearly interest rate. This…
A: Interest rate on savings provides the earnings to the investors while interest rate on credit card…
Q: a bank charges one and one-half percent per month on the unpaid balance for purchases made its…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: Assuming that the interest is the only finance charge, how much interest would be paid on a 5,000…
A: Interest is the amount paid on a loan by the borrower to the lender above the principal amount to…
Q: You decide to discount a$5250, 345-day note at 3% to your bank at a discount rate of 4.5% on day…
A: Calculation of Proceeds:Assuming there are 360 days in a year.The proceeds are $5,309.80.Excel…
Q: Calculate the bank discount and proceeds for the following simple discount notes. Usethe ordinary…
A: Notes are a financial instrument which is used by the borrower to borrow the fund or to purchase…
Q: What is the finance charge, on the average daily balance, for this card over this 1 month period?
A: Finance Charge is the interest charged by credit card companies over an outstanding amount. Average…
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Calculation of Finance Charge:The finance charge is $2.05.Excel Spreadsheet:
Q: Bank A pays 5% interest compounded annually on deposits, while Bank B pays 4.8% compounded monthly.…
A: Effective annual rate(EAR) is the rate that is actually earned or paid on investment or loan. It…
Q: Citibank pays 9% ordinary simple interest on a 30-day time deposit. If Gino deposits Php 1 500.00,…
A: Amount of simple interest can be calculated using formula = final amount = initial…
Q: You owe $190 on your credit card. billing cycle is 30 days, and the int What is your interest…
A: Average Daily Balance method Finance charges on your credit card is calculated using average Daily…
Q: In order to earn 14% simple interest on a 90 day short term loan – what discount rate should be…
A: Formula to be Used:- Simple Interest = Principle ×Rate × timeperiod100 Amount = Principle +SI Future…
Q: LMN Corp has the following data showing for the current year: Interest on peso savings account, net…
A: Solution Concept The interest deduction allowable is 20% of the interest income that is chargeable…
Q: How much interest will you have to pay for a credit card balance of $875 that is 1 month overdue, if…
A: Credit Card is short term debt instrument which allows holder of such card to purchase on credit and…
Q: Find the difference between simple interest and compound interest on a savings deposit of $70,000 at…
A: Lets understand the basics. Simple interest is a interest calculated on one single amount. In other…
Q: A bank wishes to earn a 17% simple interest in discounting notes. If the term of the discount is 3…
A: Simple Interest: When the interest on the borrowed amount is computed on the principal at the loan…
Q: If an interest rate of 8.9% compounded semi-annually is charged on a car loan, what effective rate…
A: Interest is an additional amount which is paid by the borrower to the lender on the borrowed amount…
Q: The bank is offering to the public their savings account scheme that pays 9.84% compounded annually.…
A: Annual rate (r) = 9.84% compounded annually Let the quarterly compounded rate = i Number of…
Q: the debt is paid off. How long does it take to pay off the credit card debt? ..... out the table row…
A: In this we need to consider the monthly payments and fill the table.
Q: You charged $3,172 on a credit card. If you pay the minimum payment per month of $46.69, you will…
A: Charge of credit card = 3172 Minimum monthly payment = 46.69 N = 96 payments
Q: which of the following banks would you choose for a savings account based on the following rates…
A: Banks provide interest on deposited amount at fixed rate. Higher the rate, higher will be the…
Q: Using the daily balance method of calculating interest, how much interest will you owe on a $500…
A: Given, Credit card balance = $500 interest = 20% = 20/100 = 0.2 time = 3 weeks = 21/365
Q: Calculate the net carrying value of the notes receivable on the books of ZER Finance, at the end of…
A: Notes receivable is defined as claims supported by formal promises to pay, usually in the form of a…
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 credit card bill shows a balance due of $2500 with a monthly interest rate of 1.53%. What is the…
A: The formula to calculate effective annual rate is given below:
Q: Your credit card statement says that the card has a 0.0562% interest per day. What is the actual…
A: In this question we require to compute the actual annual interest rate if daily interest rate is…
Q: Bulalugaw's net sales for 2020 is 240,000. 30% of it was on credit. In 2019 their accounts…
A: Accounts receivable turnover ratio is a type of activity ratio which is computed to check the…
Q: Calculate the finance charge for a credit card that has a given average daily balance and…
A: Credit card charges interest on basis of monthly.
Q: A bank charges a 12% bank discount on short-term loans. A borrower needs GH¢2000 cash to be repaid…
A:
Q: Is the interest on a 6%, 60 day note for 5,000, 300?
A: Interest on Note = Amount of Note x rate of interest x days/365 days
Q: If you deposit $15,000 at EOY 1, $10,000 at EOY 2, and $5,000 at EOY 3 into a savings account which…
A: Deposit at end of year 1 = 15000 Deposit at end of year 2 = 10000 Deposit at end of year 3 = 5000…
Q: Bank A pays 4% interest compounded annually on deposits, while Bank B pays 3.5% compounded daily. a.…
A: Effective Annual Rate is the equivalent interest rate for nominal rate which is compounded multiple…
Q: your bank also requires that the monthly mortgage payments include properety tax and homeowners…
A: Formulas: Total monthly payment = Monthly payment of property tax + Monthly payment of insurance
Q: If a note provides for payment of principal of $85,000 and interest at the rate of 6%, will the…
A: Receivables:Receivables refer to an amount to be received in future. General classifications of…
Q: Find the APR of the loan given the amount of the loan the number and type of payments, and the add…
A: Annual percentage rate (APR) refers to a real interest rate which an investor is expect from his…
Q: Calculate the bank discount and proceeds (in $) for the simple discount note. Use the ordinary…
A: Answer
Q: If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is the…
A: In this question we need to calculate the effective rate of interest.
How can we calculate the total annual interest payment for a credit card debt of $ 1,000?
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- Can the 10,000 note be repaid on May 1? Explain.Credit card issuers must by law print the annual interest rate they charged borrowers. If the annual interest rate is stated to be 15%, with interest paid monthly, what is the actual annual cost that the bank charges its customers on the card?How much interest will you have to pay for a credit card balance of $875 that is 1 month overdue, if a 17% annual rate is charged?
- Using the daily balance method of calculating interest, how much interest will you owe on a $500 credit card bill that is 3 weeks overdue at interest rate at 20%?A person borrows $3,000 on a bank credit card at a nominalrate of 18% per year, which is actually charged at a rate of1.5% per month. d) What is the total amount of money the person will havepaid for the loan?A credit card bill shows a balance due of $2500 with a monthly interest rate of 1.53%. What is the EAR?
- How to adjust this Accrued interest on loans payable 18,000Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.which of the following banks would you choose for a savings account based on the following rates offered? 1. 6% APR compounded annually 2. 5% APR compounded annually 3. 5% APR compounded semi-annually 4. 4% APR compounded weekly 5. 6% APR compounded quarterly.
- A credit card bill shows a balance due of $1200 with a minimum payment of $24 and a monthly interest rate of 1.44%. What is the EAR?Hagar Company's bank requires a compensating balance of 10% on a $100,000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?In order to earn 14% simple interest on a 90 day short term loan – what discount rate should be charged by a bank?