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2 years ago

What are the three methods of calculating balance charges on credit cards?.

Business

1 answer:

Rama09 [41]2 years ago

5 0

The three methods of calculating balance charges on credit cards are:

previous balance method.

average daily balance method (excluding and including newly billed purchases.

adjusted balance method.

<h3>How can we calculate a credit card balance ?</h3>

Calculation of the credit balance can be done generally by dividing the average daily balance totals by the total number of days in the billing cycle.

Then the result is then multiplied by the monthly interest rate, however all the listed method can as well be used.

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In today's business environment, would using a theory x approach help or hinder retailers faced with real estate and debt concer

Assoli18 [71]

Theory X would obstruct the company's employees' ability to advance and be productive. Because they are more concerned with making sure their work is done correctly than with developing their staff and learning about potential new prospects, managers who anticipate and micromanage daily activities do not aid in their development.

They are limiting potential sources of income in the near future by doing this, and even if these new alternatives could cause merchants more issues, if they carry on as they have, they will fail nonetheless, so it is worthwhile to explore new options. If they encounter these kinds of difficulties, they will also be unable to be innovative with future endeavors since, as the adage goes, it takes money to create money.

Retailers must, however, offer shoppers something novel if they want to overcome these worries.

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6 0

2 years ago

Bob can afford car payments of $365 per month for 5 years. If the interest rate is 4.9 percent, how much money can he afford to

tester [92]

Based on an interest rate of 4.9% per year and a monthly payment of $365 for 5 years, Bob can afford to borrow $19,388.64 today.

<h3>What is the present value?</h3>

The present value is the discounted value of future cash flows. It can be computed by using an online finance calculator as follows or the annuity present value formula.

<h3>Data and Calculations:</h3>

N (# of periods) = 60 (5 years x 12 months)

I/Y (Interest per year) = 4.9%

PMT (Periodic Payment) = $365

FV (Future Value) = $0

P/Y (# of periods per year) = 12

C/Y (# of times interest compound per year) = 12

Results:

PV = $19,388.64

Sum of all periodic payments = $21,900 ($365 x 60)

Total Interest = $2,511.36

Thus, based on the given facts, Bob can afford to borrow $19,388.64 today.

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4 0

3 years ago

Suppose that Italy and Portugal both produce cheese and wine. Italy's opportunity cost of producing a bottle of wine is 2 pounds

Lemur [1.5K]

Answer:

The correct answer is letter "A": Neither Italy or New Zealand.

Explanation:

Comparative advantage is the ability of an individual or organization to manufacture its products at a lower opportunity cost than its competitors. The scenario does not imply the individual has an absolute advantage. It actually means it sacrifices less to achieve that goal.

Thus, <em>Portugal has a lower opportunity cost than Italy in producing a bottle of wine. Portugal's opportunity cost is 1/2 while Italy's opportunity cost is 2. Neither Italy or New Zealand (or any other country not mentioned in the example) has a comparative advantage in producing wine</em>.

5 0

4 years ago

Which laws or regulations require mortgage lenders to disclose financing costs and annual percentage rate to a borrower before f

lakkis [162]

Answer:

The Truth in Lending Act (TILA)

Explanation:

TILA was passed in 1968 in an attempt to protect loan consumers from unfair practices carried out by lenders. TILA requires lenders to disclose the credit terms in a simple and understandable manner so that potential consumers can compare credit terms offered by different lenders. The information disclosed must include the loan's APR, principal, finance charges, payment schedule and monthly payments.

TILA applies to most types of consumer credit, including car loans, home mortgages, credit card, home equity loans, etc.

8 0

4 years ago

Which of the following entries correctly reflects the entry for recording the wages of all factory workers?

Ad libitum [116K]

Answer; b. Work in Process Inventory Manufacturing Overhead Wages Payable

Explanation;

Factor workers are considered to be directly related to the production of the good. As a result, the wages paid to them are added to the inventories produced to show that they are part of the cost of the goods produced. Their wages will therefore be debited to Work in Process Inventory.

The wages will then be credited to the Manufacturing Overhead Wages Payable as this is the liability account that deals with wages owed to people working in the factory.

5 0

3 years ago