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Schach [20]
3 years ago
7

The annual interest rate on a credit card is 13.99​%. If a payment of ​$400.00 is made each​ month, how many months will it take

to pay off an unpaid balance of ​$2 comma 455.44​? Assume that no new purchases are made with the credit card.
Business
1 answer:
romanna [79]3 years ago
5 0

Answer:

There will be 7 months of repayment for fully paying-off the outstanding amount.

Explanation:

We apply the present value formula to calculate the number of month it takes to paid off the outstanding amount.

We have:

Monthly payment = $400; Discounting period = number of months needs to paid off the amount; Discount rate = 13.99%/12

So, we have: 2,455.44 = [400/(13.99%/12)] x [1 - (1+13.99%/12)^(-n)] <=> [1 - (1+13.99%/12)^(-n)] = 0.071566 <=> (1+13.99%/12)^(-n) = 0.928434 =  <=> n = 6.4

=> There will be 7 months of repayment for fully paying-off the outstanding amount.

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<h3>What should they classify this business activity as?</h3>

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Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its De
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Answer:

$50,800

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X              371,000    343,500        -27,500  

Y              185,000     162,400        -22,600  

Z              <u>424,000</u>    <u>407,800</u>        <u>-16,200 </u>

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I think it's make decisions

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During 2015, Bears Inc. recorded credit sales of $680,000. Before adjustments at year-end, Bears has accounts receivable of $300
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Answer:

Bad Debts Expense                      Debit                  $ 34,440

Allowance for Uncollectible accounts   Credit                          $ 34,440

Explanation:

Computation of amount of uncollectible balances to be recorded

Total accounts Receivable                                    $ 300,000

Accounts past due                                                  <u>$   51,000</u>

Accounts not yet past due                                     $ 249,000

Estimated uncollectible from not yet past due         10 %

Estimated uncollectible from past due                       24 %

Estimated uncollectible from not yet past due 10 % * $ 249,000  = $ 24,900

Estimated uncollectible from past due 24 % * $ 51,000            =     <u>$   12,240</u>

Total Estimated Uncollectible amounts                                            = $ 37,140  

Available balance in Allowance account                                           $   (2,700)

Allowance for uncollectible accounts to be recorded                       <u>$ 34,440</u>

8 0
3 years ago
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