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Studentka2010 [4]
3 years ago
6

You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 15% APR, compounded

monthly, or borrow the money from your parents, who want an 8% interest payment every six months. Which is the lower rate
Business
1 answer:
Bess [88]3 years ago
8 0

Answer:

The lower rate is when you put it into your credit card.

Explanation:

Credit card: rate = (1 + 15%/12)^12 - 1

EAR = 16.08%

Parents loan = ( 1 + 8%)^2 - 1

EAR parents = 16.64%

Therefore, The lower rate is when you put it into your credit card.

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On July 1, 2020, Whispering Co. pays $13,620 to Metlock Insurance Co. for a 3-year insurance policy. Both companies have fiscal
S_A_V [24]

Answer:

jul-01 Prepaid expenses   13.620  

jul-01      Cash                              13.620

     

dec-31 Insurance policy expense 2.270  

dec-31     Prepaid expenses    2.270

Explanation:

Paid 1-jul 13620    

     

Three Years 13.620 36 months    

Monthly 378 month    

Current Year 2.270 6 months    

           

jul-01 Prepaid expenses   13.620  

jul-01      Cash                              13.620

     

dec-31 Insurance policy expense 2.270  

dec-31     Prepaid expenses    2.270

4 0
4 years ago
Eve was stressed as she had got transferred to italy. she decided to look at the brighter side of her relocation by telling hers
mr_godi [17]

Answer:

Emotion-focused.

Explanation:

4 0
3 years ago
An economist makes an assumption that each additional year of education causes future wages to rise by 7 percent. In this​ model
ladessa [460]

Answer:

Wage year 4= $12222.19

Explanation:

Giving the following information:

Each additional year of education causes future wages to rise by 7 percent.

A person with 12 years of education makes ​$21 000 per​ year.

A person with 4 years of education=$?

We will use the present value formula to calculate the wage in year 0. Then with the final value formula calculate the year 4 wage.

PV= FV/[(1+r)^n]

FV=final value at t time

r= rate

n= period of time

PV= 21000/(1,07^12)= $9324. 2511

Final Value= PV*(1+r)^t

Final Value year 4= 9324.2511*(1,07^4)= $12222.19

8 0
3 years ago
Which of the following statements is NOT CORRECT? a. Free cash flows are assumed to grow at a constant rate beyond a specified d
Sveta_85 [38]

Answer:

the free cash flow valuation model can be used to find the value of a division

3 0
3 years ago
During an interview, Garrett makes sure to keep his palms facing upward. What does this suggest to the interviewer?
kodGreya [7K]
I think its A. That he is Honest
5 0
3 years ago
Read 2 more answers
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