One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $600 per month. You will charge 1.0 percent per month interest on the overdue balance. If the current balance is $14,820, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $600 per month. You will charge 1.0 percent per month interest on the overdue balance. |
If the current balance is $14,820, how long will it take for the account to be paid off? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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