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lord [1]
4 years ago
10

g A person borrows $3,750 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% p

er month.(a)What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.)%(b)Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. LetBnbe the balance owed on the card after n months. Find an explicit formula forBn.(c)How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.)months
Business
1 answer:
Mice21 [21]4 years ago
8 0

Answer:

A)  0.195618171

B) It will clear the balance after 32 months.

Explanation:

We calculate the effective rate considering compounding interest:

1.015^{12} - 1 = 0.195618171

2) we sovle for N using the present value of an annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $150.00

time n

rate 0.015

PV $3,750.0000

150 \times \frac{1-(1+0.015)^{-n} }{0.015} = 3750\\

(1+0.015)^{-n}= 1-\frac{3750\times0.015}{150}

(1+0.015)^{-n} = 0.625

-n= \frac{log0.625}{log(1+0.015)}

n = 31.56799396

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vladimir2022 [97]

Answer:True

Explanation:

The first in a project is making an estimate of the project, a wrong estimate will lead to the failure of the project for this does not only determined the viability of the project but also help in providing adequate liquidity.

Availability of needed fund gives the optimism than the project will be completed and a follow up to ensure money spent adds value to the project as estimated will ensure successful completion of the project.

7 0
3 years ago
5. The time required and costs involved in an external audit are much higher as compared to internal audits.​
harina [27]

Answer:

True

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3 0
3 years ago
All City​ Realty, Inc. issued 10 comma 000 shares of $ 3 stated value common stock for $ 16 per share. The journal entry to reco
elena55 [62]

Answer:

B. Paid-In Capital in Excess of Stated long dash Common for $ 130,000

Explanation:

Whenever shares are issued at a price higher than the par value, then the additional value that is higher than par value is is added to paid in capital in excess of stated common capital.

Here, in the given case stated capital = 10,000 \times $3 = $30,000

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Therefore, correct option is

B. Paid-In Capital in Excess of Stated long dash Common for $ 130,000

7 0
4 years ago
In the u.s. surgeons earn a median salary of $365,885, which puts them at the ________ of all income.
nataly862011 [7]
<span>This answer should be "c" the top 20%. The income is clearly not middle income level, which would be d or a. It is definitely not b- bottom 20%. Therefore we are left with c- top 20% and this jives with my own experience. 1% would include millionaires and above, therefore we are left with a relatively small group of high income earners who aren't necessarily millionaires- in the sense that they earn a million or more per year.</span>
6 0
4 years ago
What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in year 1, $6,9
goldfiish [28.3K]
<span>Net present value is the present value of future cash inflows discounted at the expected rate of return minus the initial investment.
 Initial cash outflow = $7670
Cash inflow during Year 1 = $1280
Cash inflow during Year 2 = $0
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Cash inflow during Year 4 = $2750

Discount rate = 12.5%

NPV = (1280/1.125^1)+(0)+(6980/1.125^3)+(2750/1.125^4)-7670
NPV = (1280/1.125)+0+(6980/1.424)+(2750/1.6)-7670
NPV = 1137.778+0+4902.277+1716.811-7670
NPV=86.86</span>
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