1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elis [28]
3 years ago
9

Payday loans are very short-term loans that charge very high interest rates. You can borrow $400 today and repay $476 in two wee

ks. What is the compounded annual rate implied by this 19 percent rate charged for only two weeks? (Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to 2 decimal places.).
Business
1 answer:
Murljashka [212]3 years ago
3 0

Answer:

9109.18%

Explanation:

Data provided in the question:

Interest rate charged for two weeks = 19% = 0.19

Now,

The Annual rate (APR) = ( 1 + i )ⁿ - 1

Here,

r is the interest rate per period = 19%

n = number of periods in a year

In the given question interest is charged every two

also,

there are 52 weeks in a year

Therefore, total number of periods, n = \frac{52}{2} = 26

Therefore,

Annual rate = ( 1+ 0.19 )²⁶ - 1

or

Annual rate = 92.091  - 1 = 91.0918

or

91.0918 × 100 = 9109.18%

You might be interested in
The landlord of an office building charges tenants $150 per hour for extra HVAC usage after hours. During the last three years,
lidiya [134]

Answer:

$78,375

Explanation:

Actual HVAC usage = 500 + (500 × 10%) = 500 + 50 = 550

Total HVAC income before credit loss = 550 × $150 = $82,500

Total HVAC income before credit loss =  $82,500 - ($82,500 × 5%) = $82,500 - $4,125 = $78,375

Therefore, the approximate heating, ventilation, and air conditioning (HVAC) revenue the landlord will realize is $78,375.

8 0
3 years ago
Which of the following statements is/are FALSE, all else the same?
xz_007 [3.2K]

Answer:

I. Present values increase as the discount rate increases.

and

III. Present values are smaller than future values when both r and t are positive.

5 0
3 years ago
The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debts expense. The company
harina [27]

Answer:

$10,000

Explanation:

Net Credit Sales              $250,000

Allowance for Doubtful Accounts $250,000*4%=$10,000

Bad Debt Expense   will be $10,000

Bad Debt Expense Dr.$10,000

Allowance for Uncollectible  Cr.$10,000

6 0
3 years ago
The income statement lists all the
olchik [2.2K]

Answer:

A. revenue and expense

Explanation:

An income statement is among the three important financial statements prepared by a business entity. It summarizes all incomes (revenues) and expenses (costs) of a company in a particular financial year. Total costs are subtracted from the total revenue to get the net income.

An income statement is prepared to show the profits of a business in a particular financial year. A positive net income indicates profits, while a negative net income denotes losses.

6 0
2 years ago
During Burns Company's first year of operations, credit sales totaled $166,000 and collections on credit sales totaled $118,000.
marusya05 [52]

Answer:

1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense.

1  

Db Bad debt expense_______ 3320  

Cr Allowance for bad debt_________________  3320

 

2  

Db Allowance for  bad debt__ 430  

Cr Account Recevaible_____________________  430

2. Show the year-end balance sheet presentation for accounts receivable.

Account receivable__________47570  

Net account receivable_______44250

Explanation:

Credit sales 166000  

Credir sales 118000  

 

Bad debt losses 2%  

 

Writte off 430  

 

Allowance 3320  

 

 

1  

Db Bad debt expense_______ 3320  

Cr Allowance for bad debt_________________  3320

 

2  

Db Allowance for  bad debt__ 430  

Cr Account Recevaible_____________________  430

 

 

Year end balance___________48000  

Cr Account Recevaible_________430  

Account receivable__________47570  

Allownace for bad debts_______3320  

Net account receivable_______44250  

5 0
3 years ago
Other questions:
  • Suppose the country of Stan has fixed its exchange rate to the dollar. The official exchange rate is 0.50 U.S. dollars per rupee
    8·1 answer
  • What quality does an organizational structure reflect?
    14·2 answers
  • 4. Why is the customer service department of a company important?
    14·1 answer
  • What are the steps to teach your horse to show jump?
    14·1 answer
  • Vert Company purchased Dextrin common stock for $150,000. At December 31, Year 2, the Fair value adjustment account had a debit
    12·1 answer
  • Blossom Company had the following transactions involving notes payable. July 1, 2020 Borrows $61,000 from First National Bank by
    8·1 answer
  • XYZ Corporation produces and sells 10,000 units of Product X each month. The selling price is $40 per unit, and variable expense
    13·1 answer
  • Wha Companies use relationship marketing to build and maintain relationships with their _______________. *
    8·1 answer
  • Find the tax percentages for each type of tax on your pay stub and insert them here. Then, press the calculate button when you’r
    7·1 answer
  • when an estimated model begins to describe the quirks of the data rather than the real relationships between variables, this is
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!