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algol13
3 years ago
8

Q 6.3: Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approxima

te monthly interest rate that will apply to any unpaid balances on this credit card? Assume 12 equal months. A : 4.1%. B : 26.0%. C : 13.0%. D : 2.17%.
Business
1 answer:
lbvjy [14]3 years ago
5 0

Answer:

D : 2.17%.

Explanation:

The 26% is an APR(Annual Percentage Rate). This is a quoted rate that  a credit card company charges . It is also known as the  nominal rate.

Since the question is asking for a monthly rate, use the 26% and convert it into monthly rate. We have 12 months in a year; meaning, we will divide the nominal rate by 12;

Monthly rate = APR / n

APR = 26% or 0.26 as a decimal

n = compounding periods = 12

therefore, Monthly rate = 26% /12 = 2.17%

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On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rat
solniwko [45]

Answer:

Explanation:

Interest expense refers to charges paid for borrowing money. It is the money that a lender charges  borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.

Given that:

Moonbooks received $79,380 =  principal amount of debt (P)

The interest rate (r) = 8% annually = 0.08.

Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350

For the second year i.e 2019 The principal amount of debt = $79380  + $6360 = $85730

Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858

6 0
3 years ago
Olessa, single and age 60, sells her home for $540,000 after living there for 20 years. Her adjusted basis in that home was $220
Karo-lina-s [1.5K]

Answer:

Net gain = $60,000

Explanation:

Given:

Sale value of house = $540,000

Adjusted value = $220,000

Selling expenses = $10,000

Computation of gross profit on the house:

Gross profit on sale = Sale value of house - Adjusted value - Selling expenses

Gross profit on sale = $540,000 - $220,000 - $10,000

Gross profit on sale = $310,000

Maximum limit on gain from sale of house = $250,000(Form number 1040, Schedule D)

Computation of net gain:

Net gain = $310,000 - $250,000

Net gain = $60,000

7 0
2 years ago
Assume Royal Palm Corp., an equipment distributor, sells a piece of machinery with a list price of $800,000 to Arch Inc. Arch In
Alexandra [31]

Answer:

a. $720,000

Explanation:

Since in the question, it is given that the equipment is sold at the list price

The list price is $800,000 and the selling percentage is 90%

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= $800,000 × 90%

= $720,000

Simply we multiplied the list with the selling percentage so that the correct amount can come

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3 years ago
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Answer:

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Explanation:

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2 years ago
6. What do you pay for a twelve-ounce can? What are the real social costs of producing a can of Coke – in terms of water, power
VladimirAG [237]

Answer and Explanation:

To pay for a twelve ounce can it costs between 50 cents to a dollar. The social costs of producing a can coke, in which 9 liters of fresh water is used which effects fresh water supply on earth due to its contamination. The cost of making coke :costs more higher, where it has to maintain its employees, buildings, its road transportation, garbage disposal, and many more. People who are living near the coke plant building pays all these costs, and all people pays a equal part as it is taking from earth.

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3 years ago
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