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sesenic [268]
3 years ago
8

55.The manager of Bonzai's Boutique has approved Carla's application for credit. The maximum payment that has been approved is $

95 a month for 24 months. The APR is 16 percent. What is the maximum initial purchase that Carla can make given this credit approval
Business
1 answer:
rosijanka [135]3 years ago
8 0

Answer:

$1,916.2

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. In this question the payment of $95 per month for 24 months at APR of 16% is an annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where P = Annual payment = $95

First, Calculate the effective rate

EAR = ( 1 + 16%/12 )^12 - 1 = 17.2%

r = rate of return = 17.2% annual = 17.2% / 12 = 1.44% per month

n = number of years = 24 months

Placing value in the Formula

PV of annuity = $95 x [ ( 1- ( 1+ 1.44% )^-24 ) / 1.44% ]

PV of Annuity = $1,916.2

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a segregation of duties among employees always eliminates the possibility of collusion. group of answer choices true false
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Dividing tasks between employees always eliminates the possibility of collusion, but this is wrong.

Segregation of duties is important for effective internal control because it reduces the risk of errors or improper conduct. Preventing collusion helps fight fraud.

Separation of duties is an important practice to reduce the occurrence of errors and fraud by ensuring that employees do not have the opportunity to commit or conceal errors or fraud in the performance of their duties. That is internal control.

Separation of duties reduces the risk of fraud or misconduct as each affected employee has access controls and restrictions in place. Task division is delegating different steps of the process to different people to delegate important functions.

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7 0
1 year ago
In the mid 1990s, a radical new introduction to the mortgage industry was made that would revolutionize the way in which most ho
Karo-lina-s [1.5K]

Answer:

the FICO score

Explanation:

The FICO Score helps the lenders to determine the how is the borrower likely to repay the loan. It is used to determine the creditworthiness and the lenders take a FICO score of the borrower into the account and also consider details like income and other things.

FICO Score helps the lenders make smarter as well as quicker decisions.

The Fair Isaac Corporation (FICO) the score to provide industry-standard for the scoring creditworthiness.

4 0
3 years ago
Stephanie orders office supplies every month. She is making a because she always bases the order on current inventory levels, wh
Umnica [9.8K]

Answer:

She is making a <u>PROGRAMMED DECISION</u> because she always bases the order on current inventory levels, which are accurate and up-to-date?

Explanation:

Programmed decisions are routine decisions that are carried out following established procedures. This type of decisions are made generally without much consideration because they do not include important aspects of the organization's functions. Sometimes they can even be automated specially if they apply to small purchases like office supplies which can be made only by checking the inventory level.

3 0
3 years ago
Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc
Sonja [21]

The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

= 8.55%

Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

= 15.11%

Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.

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3 0
2 years ago
If the Fed increases the discount rate, which of the following accurately describes the sequence of events that will follow in t
AnnZ [28]

Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓

Explanation:

The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.

If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.

As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.

4 0
3 years ago
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