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3 years ago

Summarize the effect of credit card interest on thermal cost of items

Business

1 answer:

Mice21 [21]3 years ago

3 0

Answer:

Interest Rates

The first factor is the most obvious: the interest rate. Naturally, a low rate will cost you less—our numbers indicate a $10,000 balance with a 5.9% interest rate will cost $10,637 in total if paid off in 2 years.

That may not sound too bad, but bear in mind that 5.9% interest is extraordinarily difficult to get these days. Even people with excellent credit scores will likely pay “double digit” interest rates of over 10%. And if you’re paying a more typical 12.9% in interest on that same $10,000, you’ll pay a total of $12,797 over the same 2 years.

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The news headline "Consultants replacing high school counselors" deals with the ______ question(s) of economics.

Ede4ka [16]

Answer:

The correct answer is (A) how.

Explanation:

The news headline "Consultants replacing high school counselors" deals with the how question(s) of economics.

Given the structure of the sentence, the most appropriate word in this sentence is how.

Consultant is the professional who dominates a specific topic and uses his knowledge to help other people.

7 0

3 years ago

The number of employees that work in state and local criminal justice agencies is:

marishachu [46]

The number of employess that works in the state and local justices agencies, according to the research and studies, the number of employees who are involved with this type of job is about over one million base on the study provided.

4 0

3 years ago

Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800, $16,400, and $21,700 for Years 1 to 3,

Alecsey [184]

Answer:

Results are below.

Explanation:

To determine whether the project should be accepted or not, we need to calculate the net present value. If the NPV is positive, the project should be accepted.

To calculate the NPV, we will use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 9,800/1.0975= 8,929.38

Cf2= 16,400/1.0975^2= 13,615.54

Cf3= 21,700/1.0975^3= 16,415.20

Total= $38,960.12

NPV= -38,700 + 38,960.12

NPV= 260.12

The project is profitable.

5 0

2 years ago

Phillips industries runs a small manufacturing operation. for this fiscal year, it expects real net cash flows of $197,000. the

Stolb23 [73]

Answer: Present value of the cash flows of the company is $1,158,824.

Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.

The present value of the cash flows for perpetuity with decreasing growth rate is:

$Present value = Cash flow for year 1 (C1) / (discount rate - growth)$

where, Cash flow for the year 1 (C1) = $197,000

Discount rate (r) = 11%

Growth rate (g) = -6%

$Present value of the cash flows (PV) = $197000/[0.11 - (-0.060)]$

$Present value of the cash flows (PV) = $197000/0.17$

Present value of the cash flows (PV) = $1,158,824

Therefore the present value of the cash flows of the company is $1,158,824.

8 0

3 years ago

Air Destinations issues bonds due in 10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments

olga nikolaevna [1]

Answer: $471,324.61

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value at maturity

Coupon payments = 500,000 * 11% * 1/2 years = $27,500

Periodic yield = 12%/ 2 = 6% per semi annual period

Periods = 10 * 2 = 20 semi annual periods

Coupon payment is constant so it is an annuity.

Price of bond = Present value of annuity + Present value of face value at maturity

= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods

= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰

= $471,324.61

8 0

2 years ago