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Murrr4er [49]
3 years ago
8

You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 1.25 percent per year,

compounded monthly for the first six months, increasing thereafter to 17.8 percent compounded monthly.
Assume you transfer the $8,000 balance from your existing credit card and make no subsequent payments.

How much interest will you owe at the end of the first year?
Business
1 answer:
lana66690 [7]3 years ago
5 0

Answer:

$793.70

Explanation:

The computation is shown below:

At introductory rate

The rate is 17.8% per year

And, in monthly, the rate would be

= 1.25% ÷ 12 months

= 1.4833%

Time is 6 months

Amount after 6 month would be

= Balance × (1 + interest rate)^ time period

= $8,000 × (1 +  0.1042%)^6

= $8,050.15

The interest after 6 month is

= $8,050.15 - $8,000

= $50.15

Now for increase rate to 17.8%

The rate is 17.8% per year

And, in monthly, the rate would be

= 17.8% ÷ 12 months

= 1.4833%

Time is 6 months

Amount after 6 month would be

= Balance × (1 + interest rate)^ time period

= $8,050.14 × (1 + 1.4833%)^6

= $8,793.70

The interest after 6 month is

= $8793.70 - $8,050.15

= $743.55

So, the total interest would be

= $50.15 + $743.55

= $793.70

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Olin [163]

Answer:

Type A is 7%, type b is 11%

Explanation:

We have these two firm's as type a and type b

For type A

Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%

For type B

= Risk free rate of 5% + risk free rate of 6% = 11%

I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.

8 0
2 years ago
Assume that ExxonMobil uses a standard cost system for each of its refineries. For the Houston refinery, the monthly fixed overh
maksim [4K]

Answer:

a. Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead

= $8,000,000 - $8,750,000

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= $1.60 per barrel

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Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead  

5 0
3 years ago
Maddy works at Burgers R Us. Her boss tells her that if she stays with the company for five years, she will receive a bonus of $
Sergeu [11.5K]

Answer:

$4,038

Explanation:

Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.

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Answer:

d

Explanation:

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A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

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Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.

6 0
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laiz [17]

Answer:

Simple Structure

Explanation:

Im pretty sure!

7 0
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