1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleksandr [31]
3 years ago
10

Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the

APR is stated to be 24.50%, with interest paid monthly, what is the card's EFF%?
Business
1 answer:
larisa86 [58]3 years ago
6 0

Answer:

The EFF of card is 27.45%.

Explanation:

EFF interest rate is an interest rate which is actually paid or received on debt or investment. It is also known as Effective Interest rate.

APR = 24.50%

EFF = ( ( 1 + r/m )^m ) - 1

EFF = ( ( 1 + 0.245/12 )^12 ) - 1

EFF = ( ( 1 + 0.020417 )^12 ) - 1

EFF = ( ( 1.020417 )^12 ) - 1

EFF =  1.27447765 - 1

EFF = 0.2745

EFF = 27.45%

You might be interested in
Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a
lubasha [3.4K]

Answer:

MIRR = 16.6%

Explanation:

We have the formula to calculate the MIRR of the project:

+) MIRR =\sqrt[n]{\frac{FV}{PV} } - 1

In which:

  • FV - terminal value, the future value of net cash inflow which is assumed to be re-invested at the rate of cost of capital = WACC = 12.25%
  • PV - the present value of the net cash outflows during the investment at the rate of cost of capital = WACC
  • n: numbers of years (n=4)

The future value of net cash inflow Year i = Cash inflow × (1 + Cost of capital)^(number of years reinvested)

= Cash inflow × 1.1225^(n - i)

+) FV1 = 300 * 1.1225^{3} = $424.327

+) FV2 = 320 * 1.1225^{2} = $403.202

+) FV3 = 340 * 1.1225^{1} = $381.65

+) FV4 = 360 * 1.1225^{0} = $360

<em>=> Terminal Value = 424.327 + 403.202 + 381.65 + 360 = $1569.179</em>

<em />

Present Value Year i = \frac{Cash flow}{(1+WACC)^{i} } = \frac{Cash flow}{1.1225^{i} }

The project requires the initial investment = - $850 and there are no cash outflows during 4 years of the project

<em>=> PV of the project = PV Year 0 = </em>\frac{850}{1.1225^{0} }<em> = 850</em>

=> MIRR = \sqrt[4]{\frac{1569.179}{850}}  - 1 =  0.166 = 16.6%

6 0
3 years ago
Data related to the inventories of Mountain Ski Equipment and Supplies is presented below:
Ksivusya [100]

Answer:

C) $130,000

Explanation:

Based on the lower of cost or market rule, the valued of the inventory would be

Replacement cost = $130,000

Selling price = $150,000 - $150,000 × 10% = $135,000

After considering the normal gross profit ratio, the value would be

= $135,000 - $150,000 × 20%

= $105,000

If we compare the cost and replacement value, then the less value would be considered i.e $130,000

8 0
3 years ago
In an economy with a population of 100 million persons, 50 million hold civilian jobs and 20 million are not working but are loo
faust18 [17]

half, 50%, have jobs and 20% are looking for jobs

Explanation:

6 0
3 years ago
To maintain public confidence and trust in the financial reporting of companies is the purpose of
Tema [17]

Answer: Option (c) is correct.

Explanation:

The purpose of Sarbanes-Oxley act is a federal law that is created for the supervision of public companies. It is introduced to audit and financial regulation of the companies. Also, it is established to help protect the general public, shareholders and companies from the fraudulent activities and accounting error.

7 0
3 years ago
When Wendy opened the paint company website, she noticed a button that said "Paint Your Room" and when she clicked on it she cou
Kryger [21]

The connection factor is the represented by the "<em>Paint Your Room</em>" button on the website,

<h3>What is the 7C's of Online marketing framework?</h3>

The aim of the 7C framework was to analyzing e-commerce interfaces and examines the customer interface based on some factors.

The factors of the 7C'S includes:

  • context
  • content
  • community
  • customization
  • communication
  • connection
  • commerce.

Hence, the connection factor is the represented by the "<em>Paint Your Room</em>" button on the website,

Therefore, the Option A is correct.

Read more about the marketing framework

brainly.com/question/17844286

7 0
2 years ago
Other questions:
  • You are thinking about investing $ 4 comma 650 in your​ friend's landscaping business. Even though you know the investment is ri
    9·1 answer
  • It’s been a year since Roland started a small retail business. His only supplier went bankrupt after a few months. Roland’s busi
    5·2 answers
  • The records of Norton, Inc. show the following for July. Standard labor-hours allowed per unit of output 1.2 Standard variable o
    5·1 answer
  • Innovation in the sales process and methodologies within the sport industry have often been more advanced then those used in oth
    8·1 answer
  • Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
    10·1 answer
  • When delivering a 60-second commercial in an interview, you should NOT: a. Keep the commercial concise b. Play a recorded versio
    6·2 answers
  • Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company’s accounting system says that the unit product
    9·1 answer
  • The stock of Mulberry Corporation is owned by Archana (60%) and Anar (40%), who are mother and daughter. Pursuant to a plan of c
    8·2 answers
  • The provision of accounting information for internal users is known as
    15·1 answer
  • Karen makes $10 per hour and is paid time and
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!