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3 years ago

Which payment method typically charges the highest interest rates? EverFi?

Business

2 answers:

Yanka [14]3 years ago

5 0

A is the correct answer.

MakcuM [25]3 years ago

5 0

<u>Option A is correct. </u>

<u>Credit cards charge the highest interest rates. </u>

Further explanation:

Credit card:

Credit card is issued by financial institutes such as banks. A credit card is a plastic card that allows the cardholders to borrow the funds from the respective bank and spend the funds as per their requirements. A credit card can be used for the purchase of goods and services. A credit card has a specific limit. It is known as a line of credit (LOC). The cardholder can withdraw or use the funds up to the LOC. The cardholder has to pay the borrowed amount along with interest on the borrowed funds after a specific period of time, which is defined and stated at the time of issuing the credit card.

Justification for the correct and incorrect answer:

Credit cards: This option is correct.

Credit cards are used for the purchase of products or services. Credit card charges the highest rate of interest than the mortgage loans or any other loans.

Cashier's checks:This option is incorrect.

Cashier’s checks are a check guaranteed by the bank or financial institution. They are mainly required by the brokerage transactions. They also charge a high rate of interest but not more than the credit card’s rate of interest.

Pre-paid cards:This option is incorrect.

Pre-paid cards include MasterCard, Visa, and American express, these can be used anywhere for purchasing any item like shopping or goods purchased. And pre-paid cards charge the lowest rate of interest for loading the amount in the card.

Payday loans:This option is incorrect.

A payday is a small amount of loan taken for any purpose. Payday loans are expensive but they do not charge a high rate of interest than the credit cards. They charge a high rate of interest depending upon the income of the borrower for taking short-term loans.

Thus, credit cards charge the highest interest rates.

Learn more:

1. Common credit card fee

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2. Charging fee in case of credit card

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3. Consequences of non-payment of monthly credit card payment

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Answer details:

Grade: High School

Subject: Business studies

Chapter: Money and banking

Keywords: Which payment method typically charges the highest interest rates, Credit cards, Cashier's checks, Pre-paid cards, Payday loans, MasterCard, Visa, American express, lower, loading, amount, short-term, high rate of interest.

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The ABC's dividend yield when the ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00 is 10%.

<h3>What is yield?</h3>

The yield on a security is defined as the measurement of the ex-ante instrument to a safety holder in financing.

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The formula of calculating the yield is:

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100$

According to the given information,

Dividend Per Share= $1.40,

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Current Price= $14

Now, apply the formula in the given formula,

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100\\\\\text{Dividend Yield} =\dfrac{1.40}{\$14}\times 100\\\\\text{Dividend Yield} =10\%$

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2 years ago

The majority of 401 (k) plans are participant directed.<br> a)true<br> b) false

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Answer:

1. D

2. A

3. C

4. B

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In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

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