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natta225 [31]
4 years ago
10

The manager of Gloria's Boutique has approved Carla's application for 24 months of credit with maximum monthly payments of $70.

If the APR is 14.2 percent, what is the maximum initial purchase that Carla can buy on credit?A) $1,006.90B) $1,300.00C) $1,455.08D) $1,184.75E) $1,228.46
Business
1 answer:
bonufazy [111]4 years ago
4 0

Answer:

C) $1,455.08

Explanation:

Formula = M = [P (1 + r)^n * r] / [(1 + r)^n - 1]

Putting the figures in the formula =

$70 = P [(1 + 0.142/12)^24 * 0.142/12 ] / [(1 + 0.142/12)^24 - 1]

=> $70 = P (1.326209535) * 0.142/12 / 0.326209535

=> $70 = P * 0.0156934795 / 0.326209535

=> P = $1455.08

So, the maximum initial purchase that Carla can buy on credit = $1455.08

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A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is calle
Ronch [10]

Answer:

e. Sunk cost.

Explanation:

As per the given statement, the best appropriate option is sunk cost. As the sunk cost deals with the past cost which is already incurred in the past and it cannot be changed or avoided, neither it can be recovered. Example - Rent expense.

Plus it does not affect the future decisions that means it is irrelevant for decision-making aspects.

6 0
3 years ago
Indirect competition includes goods or services which are: a.closely priced. b.indirectly distributed. c.similar. d.substitutes.
AURORKA [14]

Answer:

Substitutes

Explanation:

Competition in business occurs when a two companies produce and sell similar product.  It is further grouped into direct and indirect competition.

While direct competition occurs between companies producing almost the same products , for example breweries producing beers , indirect competition happens between companies selling goods that are not directly similar but can also be used to achieve the same purpose if the other good is not available. Indirect competitors always have a way of sharing or winning over potential customers.

5 0
3 years ago
Which is an example of a mandatory deduction on a pay stub?
Grace [21]

Answer:

Some mandatory payroll tax deductions that employers are required by law to withhold from an employee's paycheck include: Federal income tax withholding. Social Security & Medicare taxes – also known as FICA taxes.

~Its srishty~✿

3 0
2 years ago
Darren runs a barbershop with fixed costs equal to $40 per day and a total output of 10 haircuts per day. What is his weekly tot
mixer [17]

Answer:

$240

Explanation:

Darren runs Barber shop

His fixed costs daily is $40

The toal output per day is 10 haircuts

He is open 6 days in the week

Therefore weekly total fixed costs can be calculated as follows

= 40×6

= 240

Hence the weekly fixed cost is $240

7 0
3 years ago
Kyle made a down payment of $850 towards his car loan. He will be paying $415 every month for 24 months. How Much does the car c
Ronch [10]
<span>Down payment = $850
</span><span>Monthly payment = $415
</span><span>Loan term = 24 months
</span><span>First, ($415)(24) = $9,960
</span><span>Second, ($850+$9,960) = $10,810
</span><span>The total car costs $10,810 </span>
4 0
3 years ago
Read 2 more answers
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