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AlekseyPX
3 years ago
14

Sporting goods charges .85 percent interest per month. what rate of interest are its credit customers actually paying?

Business
1 answer:
seraphim [82]3 years ago
8 0
To answer this item, we assume that the interest rate is simple, such that the yearly rate was only divided by 12 months in order to determine the rate per month. Hence, to answer this item, we simply have to multiply the given percent by 12.

                          rate of interest/year = (12)(0.85%) = 10.2%

Therefore, the answer is 10.2%. 
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A.  $650 $750 $677

Explanation:

period                 purchases                            sales

1                        20 units at $50                15 units at $60

2                       35 units at $40                35 units at $45

3                       85 units at $30                85 units at $35

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  • cost average = ($4,950 / 140 units) x 135 units = $4,773.21

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