Answer:
16.22%
Explanation:
3/15, net 45 means that if Newsome pays within 15 days, it will get discount of 3%, otherwise it can pay within 45 days in full.
Nominal annual percentage cost of non-free trade credit based on 365 days can be calculated using the below formula:
Discount %/(100%-Discount %)*(365/(Actual credit days – Discount days))
In this case
Discount%=2%
Actual credit days=60
Discount period=15
Cost of non- free credit=2%/(100%-2%)*(365/(60-15)
=2%/98%*(365/45)
=0.02*8.11
=16.22%
Answer:
D
Explanation:
The aztecs were ancient/primitive
Answer:
number of payment is 3.05 payment
so correct option is b 3.05 payments
Explanation:
balance = $5000
annual rate r1 = 18.7 % = 
= 0.01558
credit card charging r2 = 5.9% = 
= 0.004917
payments P = $250 month
to find out
How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card
solution
we first find time t both rate by total balance formula that is
balance = 
...........................1
here P is payment and t is time and r is rate
put here all value and find t for r1
balance =
5000 = 
take log both side
log 0.6884 = log 1 - log
t = 24.1519 .................2
and now put here all value and find t for r2
balance =
5000 = 
take log both side
log 0.9016 = log 1 - log
t = 21.1055 .....................3
so by equation 2 and 3
so no of payment will be 24.1519 - 21.1055
so number of payment is 3.05 payment
so correct option is b 3.05 payments
Answer:
All the options are correct
Answer:
A. The parameters p and u are the same for both trees
Explanation:
Calculation of parameters of u(upper limit) and p(lower limit) for both index and stock:
1) INDEX
Current Value: 100
Volatality : 25%
Value can increase upto 100+25% = 125
Value can decrease to 100-25% = 75
U = Value after increase/current value = 125/100 = 1.25
P = Value after decrease/ current value = 75/100 = 0.75
2) STOCK
Current Value: 100
Volatality : 25%
Value can increase upto 100+25% = 125
Value can decrease to 100-25% = 75
U = Value after increase/current value = 125/100 = 1.25
P = Value after decrease/ current value = 75/100 = 0.75
---> The parameters U and P for both index and stock are same. This is because both the index and stock has same value and same volality rate. Therefore, stock move according to the index.
if index changes by certain percentage the stock also changes. Here in this case, volatality rate is same for both index and stock. Hence Parameters U and P are same for Index and Stock.
