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4 years ago

What type of credit involves a set number of payments at a set dollar amount for a fixed period of time?

2 answers:

7 0

A loan is a type of credit that involves a set number of payments at a set dollar amount for a fixed period of time. When you take out a loan on something, you are agreeing to the amount of the loan and the terms that are set for repaying the lender back.

You can calculate the balance based on the daily balance method which sums up all of your finance charges for each day during the period. You can divide the APR by 365 to see the amount of interest that is paid daily. Lately, you can take the balance and multiple it by the per day interest to get the payment charges.

lilavasa [31]4 years ago

4 0

Installment Credit involves a set number of payments at a set dollar amount for a fixed period of time.

Adjusted balance method
Previous balance method
Average daily balance method

Hope this helps, have a blessed and wonderful day!

You might be interested in

Which item are mis-categorized balance sheet?

ivann1987 [24]

Answer:

B and C are mis-categorized balance sheet.

Explanation:

A. Accounts Payable: Accounts payable refers to amounts that are due to be paid by a company to vendors or suppliers of goods or services received without making payments yet. This is a liability item and the categorization is correct.

B. Prepaid expenses: These are advanced payments made by a company for commodities yet to receive. This is an asset item and the categorization is not correct.

C. Accounts Receivable: These refers to amounts that are owed to a company by its debtors for goods or services supplied to them for which they are yet to pay for. This is an asset item and the categorization is not correct.

D. Accrued expenses: These refers to expenses that have been incurred by a company but which the company is yet to pay for. This is a liability item and the categorization is correct.

E. Unearned revenue: This refers to advanced payment received by a company in respect of goods it is yet to deliver or services it is yet to render. This is a liability item and the categorization is correct.

F. Long-term debt: This refers to the amount of of outstanding debt of business with a maturity of 12 months or longer. This is a liability item and the categorization is correct.

Conclusion

Only B and C are mis-categorized balance sheet. The reason is that they are both asset items, current assets to be specific, not liability items.

6 0

3 years ago

Regent Plumbing Corporation provides plumbing services. Selected transactions of Regent Plumbing Corporation are described as f

Fynjy0 [20]

Answer:

net income 5,600

Explanation:

a.- service revenue 3,500

b.- it do not affect the net income. Is trading one asset (cash) for another (equipment)

c.- it do not affect the income. It increase a liability (note payable) and an asset (cash)

d.- rent expense (900)

e.- it do not affect the net income. Is trading one asset (cash) for another (supplies)

f .- service revenue 3,000

net income = revenue - expenses

service revenue 3,500 + 3,000 = 6,500

rent expense (900)

net income 5,600

3 0

4 years ago

A and B have a written contract whereby A agrees to sell B a plot of land for $100,000. Later, without terminating the first con

AnnZ [28]

Answer:

B) Is not a contract because there is no consideration for B's promise.

Explanation:

In contract law, consideration is the benefit that must be bargained for between the parties involved. It is the essential reason for the parties entering a contact. Consideration must have some value and is exchanged on the performance or promise from the other party.

Common law rules on contract modifications require some new consideration in order to modify an existing contract. In this case, only B added some new consideration (more money) to the written contract, A didn't add anything new.

3 0

4 years ago

You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an annual r

oksano4ka [1.4K]

Answer:

The answers are:

a. 1866.79

b. 2489.05

c. 3733.57

Explanation:

a. Let us begin by calculating the total amount to be saved each year.

Let the total amount to be saved each year be "m"

annual return = 11.6% of m = 11.6 ÷ 100 = 0.116 of m

Therefore to be a millionaire in 40 years, the total amount saved for the year + the annual return on that amount when multiplied by 40 will yield 1 million. It is represented thus:

(0.116m + m) × 40 = 1,000,000

= (1.116m) × 40 = 1,000,000

44.64m = 1,000,000

∴ m = 1,000,000 ÷ 44.64 = 22401.433691756

therefore amount to be saved for a year = 22401.433691756

to calculate amount to be saved each month we divide this amount by 12, because 12 calendar months make one year. Hence;

amount to be saved each month = 22401.433691756 ÷ 12 = 1866.79 (to 2 decimal places).

b. If you wait 10 years, then you have only 30 years left to save

since the annual return remains the same,

(0.116m + m) × 30 = 1,000,000

(1.116m) × 30 = 1,000,000

33.48m = 1,000,000

∴ m = 1,000,000 ÷ 33.48 = 29868.578255675 (amount to be saved for a year)

Therefore amount to be saved per month = 29868.578255675 ÷ 12 = 2489.05 ( to 2 decimal places)

c. If you wait 20 years before saving, you hve 20 years more to save.

Since the annual return remains the same;

(1.116m) × 20 = 1,000,000

22.32m = 1,000,000

m = 1,000,000 ÷ 22.32 = 44802.867383512 (yearly amount to be saved)

Therefore amount to be saved per month = 44802.867383512 ÷ 12 = 3733.57 ( to 2 decimal places).

7 0

3 years ago

Production possibilities curves are useful to businesses because they

Yuki888 [10]

C hehehegehehegg he go

6 0

3 years ago