All categories

3 years ago

Why do credit card companies typically require small minimum payment amounts on their customers' monthly credit card statements.

Business

1 answer:

evablogger [386]3 years ago

7 0

Answer:

C) Credit card companies want to increase profits by promoting slower repayment, and actual customer repayments will be anchored by the smaller payment options

Explanation:

It is always a bad idea to only pay the minimum monthly payment on a credit card debt, since the APR charged is much higher than other personal loans. If someone only makes the minimum payment and continues to purchase goods or pay services, their balance will continue to grow.

You might be interested in

If disposable income increases by $5 billion and consumer spending increases by $4 billion, the marginal propensity to consume i

miss Akunina [59]

Answer: 0.8.

Explanation: um hm.

7 0

2 years ago

Read 2 more answers

Crisp Cookware's common stock is expected to pay a dividend of $3 per share at the end of this year; its beta is 0.9; the risk-f

slavikrds [6]

Answer:

The answer is $41.21

Explanation:

Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%

Cost of Equity = D1/Current Stock Price + Growth Rate

10.6% = $3/$40 +g

g = 3.1%

Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21

7 0

3 years ago

Craftwell Inc. pays a $0.75 dividend every quarter and will maintain this policy forever. What price should you pay for one sha

Advocard [28]

Answer:

Quarterly dividend (D) = $0.75

Annual return (Ke) = 10.5% = 0.105

Quarterly return = 0.105/4 = 0.02625

Current market price = <u>Quarterly dividend</u>

Quarterly return

=<u> $0.75</u>

0.02625

= $28.57

Explanation:

Current market price is the ratio of quarterly dividend paid divided by quarterly return.

3 0

3 years ago

Real property taxes are often assessed on the value of the property at the beginning of the year. when property is sold in the m

sergejj [24]

When property is sold in the middle of year, both the buyer and seller can deduct their pro rated portion of the property tax.

The property taxes are based on the assessed value of the property. So when the property tax is pro rated at the time of the transfer, both the buyer and seller can deduct their pro rated portion of the property tax.

Buyer and seller prorations are often applied during real estate closing transactions to divide the cost of expenses like property taxes. Thus, the buyer gets a deduction for the prorated amount of property tax due after closing, and the seller gets the same deduction for the taxes.

Hence, both the buyer and seller receives the deduction for the real property tax.

To learn more about property tax here:

brainly.com/question/15227817

#SPJ4

6 0

1 year ago

McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a cust

Liono4ka [1.6K]

Answer:

C. Debit Service Fee Expense for $6

Explanation:

McGregor only uses the services of the Credit Card company for their own activities, therefore, aside from the income of the service provided of $200, the credit card company will charge McGregor for the use of credit card services by the customer.

As such, since it is the decision of the customer to pay with a credit card, then the customer must bear the service fee expense of 3% of the cost of the service which is $6. Hence, Option C is correct. It means aside the $200 for the service, there is a need to debit service fee expense for $6

Option D is wrong because only $200 is service revenue, it has to be clearly stated that the 3% of $6 is different from the service revenue and should be debited as service fee.

If the customer is reluctant to make the payment, then there is an allowance to pay cash instead of using the credit card service.

5 0

3 years ago