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3 years ago

Why is it important to compare the APR for credit cards?

2 answers:

4 0

It is important to find the lowest interest rate. With credit cards, interest rate and APR can be used interchangeably, since there are typically no fees other than interest that are charged for borrowing money on a credit card.

EastWind [94]3 years ago

4 0

The correct answer is B. To find the lowest interest rate

Explanation:

In finance, the Annual Percentage Rate or APR refers to the rate you are charged annually for "borrowing" money every time you pay for a service or product using credit. This rate is relevant for users of credit cards because the highest the APR the more money it cost to have a credit card and use it to pay for products and services. Due to this before getting a credit card it is important to compare the APR of different credit cards and in this way select the one that has the lowest interest rate.

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JOURNAL ENTRIES cash withdrawn by the owner for private use Rs. 25000 PLEASE HELP .

alexandr1967 [171]

Answer:

he withdrw 25,000

Explanation:

5 0

2 years ago

Read 2 more answers

Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0

Anuta_ua [19.1K]

Answer:

Consider the following calculations

Explanation:

Answer:(a) Carrying value of asset: $10,000,000 - $2,500,000 = $7,500,000.

($10,000,000 ÷ 8) x 2 = $2,500,000

Future cash flows $6,300,000

Carrying value $7,500,000

Impairment entry:

Loss on Impairment A/C Dr. $1,900,000

To Accumulated Depreciation A/C $ 1,900,000

(7,500,000 - 5,600,000 = 1,900,000)

(b) Depreciation Expense A/C Dr. $ 1,400,000

To Accumulated Depreciation A/C $ 1,400,000

($5600000/4=$1400000)

(c ) No depreciation is recorded on impaired assets to be disposed of.

Recovery of impairment losses are recorded.

Loss on Impairment A/c Dr. $1,900,000

To Accumulated Depreciation A/C $ 1,900,000

12/31/2015 Accumulated Depreciation A/C Dr. $ 300,000

To Recovery of Impairment Loss A/C $ 300,000

5 0

3 years ago

You want to buy a new sports coupe for $74,500, and the finance office at the dealership has quoted you a loan with an APR of 6.

Pachacha [2.7K]

Answer:

a) Monthly payments = $22,969.38

b) Effective rate of return= 7.12%

Explanation:

Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.

The monthly installment is computed as follows:

Monthly installment= Loan amount/annuity factor

Loan amount; = 74,500

Annuity factor = (1 - (1+r)^(-n))/r

r -monthly rate of interest, n- number of months

r- 6.9%/12 = 0.575 % = 0.00575, n = 36 =

Annuity factor = ( 1- (1+00575)^(-36)/0.00575= 32.434

Monthly installment = Loan amount /annuity factor

= 74,500/32.434= 22,969.38

Required monthly payments = $22,969.38

Effective annual interest rate

Effective rate of return = ((1+r)^n- 1) × 100

where r - monthly interest rate- 6.9%/12 = 0.575%

n- number of months= 12 months

Effective rate of return - (1+00575)^(12) - 1× 100= 7.12%

Effective rate of return= 7.12%

5 0

2 years ago

The advanced machinery used for limestone quarrying in a particular region leads to noise pollution and affects the hearing abil

Tanzania [10]

Answer:

A. Recent environmental research reveals that the dust from the limestone quarrying site has severely contaminated the water at a nearby lake.

Explanation:

The limestone production results in huge social effects like, noise pollution, soil pollution, which affects lives of people. And since the manufacturers or producers of limestone do not care about the social results of such production, they shall be liable to pay huge taxes.

As for this, the cause as stated in statement A is absolutely suitable.

Also the prices are more in this area even after so much of social destruction.

Accordingly high taxes as a penalty for such social destruction shall be charged.

4 0

3 years ago

Life insurance companies tend to invest in long-term assets such as loans to manufacturing firms to build factories or to real e

andriy [413]

Answer:

The answers are:

automobile insurers
life insurance companies
a life insurance policy
longer
longer-term

Explanation:

When a company may need money in a short notice (like auto insurers), they will need to make liquid investments. That means that they can turn their investments into cash very rapidly. Since T-bills are traded all the time, they are very liquid investments, although they aren't very lucrative investments.

On the other hand, companies that know that they will not be needing a lot money promptly (life insurance), can afford to invest in projects with a longer life span that can be more profitable also. Usually liquid investments have smaller rates of return, while long term investments have higher rates of return.

4 0

2 years ago