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Leokris [45]
2 years ago
6

Monty currently has a Visa card from his bank with the following terms: 18% on purchases, 24% on cash advances with a 4% cash ad

vance fee on the amount, and a default or penalty rate of 36%. His current statement shows a balance of $6,000. So far he has only taken one cash advance, withdrawing $1,000 from a casino in Las Vegas a year ago, which he has already paid off. Lately he has been having a hard time paying more than the minimum payment of 4% of his balance. The only assets he owns are a seven-year-old car and a $2,500 certificate of deposit that has a 5% APR. What is the APY on Monty's default or penalty rate
Business
1 answer:
PilotLPTM [1.2K]2 years ago
3 0

The annual percentage yield on Monty's default or penalty rate equals to 42.58%.

<h3>What is the meaning of APY?</h3>

APY is an acronym for Annual percentage yield.

The percentage yield referred to the real rate of return that is earned on an investment after taking into account the effect of compounding interest.

Given that the Visa card has an original default or penalty rate of 36%, the annual percentage yield on Monty's default or penalty rate equals to 42.58%.

Read more about annual percentage yield

<em>brainly.com/question/13012002</em>

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A tradeoff is a balance achieved between two desirable but incompatible feature. So the reasonable answer would be B

8 0
3 years ago
The cash coverage ratio is used to evaluate the:Liquidity of a firmSpeed at which a firm generates cashLength of time that a fir
Studentka2010 [4]

Answer:

The correct answer is letter "C": Ability of a firm to pay the interest on its debt.

Explanation:

The cash coverage ratio is a metric that measures a company's ability to pay its financial obligations. Generally, the higher the coverage ratio the better for the business to meet its debt obligations. It is best to compare coverage ratios of companies in the same industry or sector in the economy. Comparisons across industries are not useful as companies in different industries use debt in different ways.

5 0
3 years ago
A homebuilder negotiates a deal with a farmer to give the farmer a percentage of the profit on homes the homebuilder builds and
Tcecarenko [31]

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C. Yes, because the farmer is making a percentage of the profit

Explanation:

If the farmer is being used as sales man and is making a 50% profit on the home he sells, then this means he is an employee and to do his job the right way he needs to have a real estate licence for that.

Hope this Helps.

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4 0
3 years ago
Read 2 more answers
Imagine that after completing your economics course (you get an A, of course) you are at a family gathering. Your grandmother as
Maksim231197 [3]

Answer:

$16,875

Explanation:

The amount received per year is $15,000 and the CPI increased from 144 to 162

Inflation rate = (New CPI - Old CPI)/Old CPI * 100

Inflation rate = 162-144/144 * 100

Inflation rate = 0.125

Inflation rate = 12.5%

Amount received = $15,000 * 12.5% = $1,875

==> $15,000 + $1,875 = $16,875

So, Grandmother will receive $16,875

3 0
3 years ago
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Goshia [24]

Answer:

An economic union

Explanation:

Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;

I. Customs union

II. Free trade area

III. Common market

IV. Political union

VI. Economic union

An economic union can be defined as a trade bloc which comprises of both customs union and a common market.

In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.

However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.

8 0
3 years ago
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