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DochEvi [55]
3 years ago
7

You recently received a letter from Cut-to-the-Chase National Bank that offers you a new credit card that has no annual fee. It

states that the annual percentage rate (APR) is 16 percent on outstanding balances. What is the effective annual interest rate?
Business
1 answer:
Alex17521 [72]3 years ago
7 0

Answer:

Effect Annual rate of return =17.22%

Explanation:

The Effective annual rate of return is the equivalent rate earned where compounding is done frequently at period or interval  less than a year.

EAR = (1+r/m)^n× m - 1

EAR - Equivalent annual rate of return, r- annul rate of return, n-number of years

r= 16/12 =1.333%, n= 1    m= 12 (note there are 12 months in a year)

EAR = (1+0.16/12)^(1×12) -   1

EAR = 1.0133^12 - 1 = 0.1722

EAR   0.1722  × 100 =  17.22%

Effect Annual rate of return =17.22%

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Other things equal, cartels and similar collusive arrangements are easier to establish and maintain: Group of answer choices whe
katen-ka-za [31]

Answer:

Option "B" is the correct answer to the following question:

Explanation:

In business or business cycle period Cartels and comparable collusive agreements are simpler to design and implement and maintain during business time or periods of business-cycle stability and high employment, assuming all other factors are equal.

4 0
3 years ago
Consider a project where the initial cash flow is negative and where all subsequent cash flows are positive.
Licemer1 [7]

Answer:

b. NPV < 0

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The decision rule is invest if IRR > required rate of return and don't invest if IRR < required rate of return.

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The decision rule is invest if NPV > 0 and don't invest otherwise.

The payback period measures how long it takes to recover the amount invested in a project from its cumulative cash flows.

There is no set acceptable pay back period. It is usually set at the discretion of firms.

The profitability index is the present value of a projects cash flows divided by the cost of investment.

The decision rule is invest if PI > 1 and don't if its otherwise.

For a project where the initial cash flow is negative and where all subsequent cash flows are positive, the NPV and IRR would agree.

From the question the IRR is less than the required rate of return which means the project shouldn't be embarked on. When the NPV is calculated, the same conclusion should be reached. So, the npv should be less than zero.

I hope my answer helps you

7 0
3 years ago
the costs of carrying inventory include the costs of . (check all that apply.) multiple select question. delivering goods to cus
gogolik [260]

The costs of carrying inventory include the costs of .

  • theft
  • storage
  • spoilage
  • obsolescence

<h3>What is inventory carrying cost?</h3>

Inventory carrying cost can be defined those cost or expenses incurred by companies so as to store their products or goods in their warehouse.

Most companies tend to incur this type of cost because they will need to stock or keep inventory for a period of time and  sometimes this store inventory are at risk of be stolen or damaged.

Therefore the costs of carrying inventory include the costs of, theft, storage, spoilage and obsolescence.

Learn more about Inventory carrying cost here:brainly.com/question/18804059

#SPJ1

4 0
1 year ago
When Paul listened to the presidential candidate debates, he heard one candidate proposing to increase taxes and the other candi
lord [1]

Answer:

as taxes increase, there is a decrease in supply

Explanation:

6 0
3 years ago
Select the sentence where the idea is clearer.
dmitriy555 [2]

Answer:

B. We have every desire and hope of a substantial salary increase.

Explanation:

Prepositions are used along with a noun or a pronoun to indicate a relationship with another word or element in the clause. It makes an idea clearer.

Examples of prepositions are at, for, if, on, in, over, and under.

These are used to describe location time or place. However we should avoid unnecessary use of prepositions.

In this instance the use of for in the following sentence is unnecessary, as 'every desire' is adequate : 'We have every desire for and hope of a substantial salary increase. '

We have every desire and hope of a substantial salary increase. Is a more concise and better option

5 0
3 years ago
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