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Burka [1]
3 years ago
15

BestBank's Visa credit card discloses an A.P.R. of "Prime Rate + 5.74% to Prime Rate + 22.74%." If the Prime Rate increases from

3.25% to 4.25%, what impact would this have on A.P.Rs for cardholders?
a. No change since credit card A.P.Rs don't change as long as your account is open
b. Increase in A.P.R by 1%
c. Decrease in A.P.R. by 1%
d. Increase in A.P.R. by 22.74%
Business
1 answer:
Brrunno [24]3 years ago
4 0

The prime rate is the base rate for any financial transaction. The prime rate is considered for each type of lending instruments by the bank. bank add a margin % over the prime rate and offer loan/instrument at the increased rate.

In the given case, the BestBank's Visa credit card discloses an A.P.R. of "Prime Rate + 5.74% to Prime Rate + 22.74%, which means the A.P.R is calculated on the basis of Prime rate and any change in prime rate will directly affect the A.P.R.

The Prime Rate has increased from 3.25% to 4.25%, it means the increase of 1%. Hence the A.P.R. Shall also increase by 1%.

Hence the correct answer is:

b. Increase in A.P.R by 1%

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Triss [41]

The American possibility credit score is especially for undergraduate university college students and their parents. you can claim the credit for your taxes for most of four years. Your mother and father will claim the credit in the event that they paid on your training charges, and you're indexed as a depending on their go back.

The American Opportunity Tax credit score is a tax credit to help pay for schooling charges paid for the first 4 years of training completed after excessive faculty. you may get a most annual credit of $2,500 in keeping with eligible pupils and 40% or $1,000 might be refunded if you owe no tax.

The eligible for AOTC, the student ought to: Be pursuing a diploma or different diagnosed schooling credential. Be enrolled at least 1/2 time for at least one educational duration* beginning within the tax year. no longer have completed the primary 4 years of higher schooling at the start of the tax.

Learn more about  American Opportunity here:brainly.com/question/1549591

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3 0
2 years ago
Assume you have a property insurance contract which includes an 80% coinsurance provision. The insured building is worth $5,000,
BaLLatris [955]

Answer:

$1,500,000

Explanation:

in order for the insurance company to pay for all the damages, you should have purchased a policy that covered $4,000,000 in damages. Since the policy only covers $3,000,000, the insurance company will pay:

($3,000,000 / $4,000,000) x $2,000,000 (loss) = 0.75 x $2,000,000 = $1,500,000

3 0
3 years ago
When establishing an ad campaign in a foreign country, what does the difference in currency exchange rate affect the most?
pentagon [3]

Answer:

Option A. The cost structure of the ad campaign

Explanation:

The reason is that the currency exchange rate effects the transactions of money from home to foreign or foreign country to home country. So the option with money transaction is option A.

The rest of the options are planning and are things that are not associated with the foreign transactions. So the remainder options are not the one which will be effected by the currency exchange rate.

4 0
3 years ago
What term in strategic management theory related to managerial motive defines a manager's actions when those actions shape the f
navik [9.2K]

The correct answer to this open question is the following.

Although there are no options attached, we can answer the following.

The term in strategic management theory related to managerial motive defines a manager's actions when those actions shape the firm's strategies to serve the manager's interests rather than to maximize long-term shareholder value is: "Egotism."

Egotism is one of the terrible mistakes a manager can make in the corporation. When a manager is egotistic, he/she is first and foremost interested in his own benefits, and this is an action contrary to the mission, vision, and philosophy or the organization,

A good manager is always going to look for the very best of the group, the team members, instead of its personal gains. People will follow a manager -or better said- a leader whose main concern is the team, not the individual.

5 0
3 years ago
Which of the following is correct?
Alex17521 [72]

Answer:

The correct answer is b) "The greater the degree of product variation, the greater is the excess capacity problem."

Explanation:

Excess capacity means that the demand for a stock is less than the quantity that the company probably could provide to the market.

  • The greater the degree of product variation, the greater is the excess capacity problem.
  • A lower scale of output than it has been designed for creates an excess of capacity.

4 0
3 years ago
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