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3 years ago

Why does the credit card company set the minimum payment so low

Business

1 answer:

Illusion [34]3 years ago

5 0

Answer:

To increase profit from interests by increasing duration of balance repayment.

Explanation:

The purpose of every business is to make profits and the reason why every credit card company includes a minimum payment is not just to make it easier to pay but by only making minimum payments, credit card holders could be kept as customers and paying interests on debt for longer.

Secondly, the more the periods the more likely you'll default on some of them and pay penalty fees which means additional income for the companies

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Roman buys seed packets for the school garden. One packet of radish seeds costs $1. 75. One packet of tomato seeds costs $2. 50.

bezimeni [28]

Roman may buy 23 tomato and 9 radish, for the school garden.

<h3>Calculation:</h3>

Let (r) represent the cost of one packet of radish seeds, and

Let (t) represent the cost of one packet of tomato seeds.

Amount spent by roman = $62.75

It denotes that;

$\ 1.75r +2.5t = 62.75.......equn. 1$

Roman bought 32 packets of seeds and one packet of radish seeds costs = $ 1.75.

One packet of tomato seeds costs = $ 2.50.

It denotes that,

$\ r+t=32.....equn.2$

Substitute t=9 , and r= 23, we have

In eq. 1

$\ = 1.75\times9 + 2.5\times23 = 62.75\\ = 15.75+57.5 \neq 62.75 \\ = 62.75 = 62.75$

In eq.2

$\ =32=23+9 = 32\\$

Here, both the equations are satisfied, therefore, option [C] is correct.

Learn more about equation:

brainly.com/question/2263981

8 0

2 years ago

Craig and Kris were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at

Andreas93 [3]

Answer:

does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses

Explanation:

From the question, we are informed about Craig and Kris who were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at the same time Kris moved to his right to avoid Craig. They bumped into each other. This example illustrates the concept of coordination failure and in this case, This idea relates to macroeconomic instability because the economy does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses. Coordination failure can be regarded as failure that takes place as a result of group of firms want to achieve a more desirable equilibrium, but resulted to failure as a result of their decision making not been coordinated

8 0

3 years ago

Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality includ

balandron [24]

Answer:

Differences in abilities and talents

Explanation:

Income inequality refers to variation or discrepancy between income levels of individuals. Income inequality arises on various accounts one of which being, difference in abilities and talents.

All individuals possess different skill sets and their efficiencies vary too. Some individuals are more creative and talented than others while some are more laborious and hardworking.

Each skill set has it's own demand and thus, income is fixed as per the demand of a particular skill set for a given sector.

This leads to some earning lot more than others and differences in pay scales as per the abilities individuals possess.

6 0

3 years ago

How does the interpretation of the regression coefficients differ in multiple regression and simple linear regression?

kati45 [8]

Answer and explanation:

Regression coefficients portrait the changes in variables after one unit has changed keeping the rest of the predictors of the model the same. While the simple linear regression is predicted from one variable, the multiple regression is predicted for more than one of them.

5 0

3 years ago

Tom sells his father's watch for $100 to sue. he later finds out from his father that the watch was an expensive rolex. tom want

Daniel [21]

The court would rule in sue's favor because courts seldom inquire into the adequacy of consideration.

In contracts, consideration just means the exchange of things of value. There has to be an exchange of things of value for there to be an enforceable contract, and in this case a watch was exchanged for money. It is rare for courts to rule on how much consideration is expected because people are generally free to set their own prices and not sell if the price is too low. That is not for a court to decide (in most cases).

8 0

3 years ago