1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marissa [1.9K]
2 years ago
10

You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .5 percent per year, co

mpounded monthly for the first six months, increasing thereafter to 17.3 percent compounded monthly. Assume you transfer the $6,300 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:
user100 [1]2 years ago
3 0

Answer:

$738.39

Explanation:

<u>Interest is compounded for first 6 months</u>

Amount at the end of 6 months = $6,300 * (1+0.05/12)^6

Amount at the end of 6 months = $6,300 * 1.025262

Amount at the end of 6 months = $6,459.15

<u>Therefore, 17.3%</u>

Amount at the end of 12 months = $6,459.15*(1+0.173/12)^6

Amount at the end of 12 months = $6,459.15*1.0896782

Amount at the end of 12 months = $7,038.39

Interest owed = Amount owed - Principal

Interest owed = $7,038.39 - $6,300

Interest owed = $738.39

You might be interested in
In marketing, the term __________ is used to describe the number of stores in a geographical area—and type of intermediaries to
HACTEHA [7]

The answer would be geomarketing. The type of intermediaries that can be utilized are as follows:

1. retailers- outlets that trade directly to household customers

2. wholesalers- their main purpose is to sell to retailers

3. distributors- similar to wholesalers but sell one line of product only

4. agents- main purpose is to act as the main representative of the company

4 0
3 years ago
The Retained earnings account has a credit balance of $23,800 before closing entries are made. Of total revenues for the period
skelet666 [1.2K]

Answer:

The ending balance in the retained earnings account is $31400.

Explanation:

The ending balance in the retained earnings accounts is equal to the opening balance of the retained earnings account plus the addition to the retained earnings for the year.

The addition to retained earnings will be the Net income less dividends.

The net income for the year was = 75200 - 55000 = $20200

Addition to Retained earnings = 20200 - 12600   = $7600

Closing balance of retained earnings = 23800 + 7600  = $31400

4 0
3 years ago
A normal profit is:______
katen-ka-za [31]

Answer:

b. revenues minus accounting and opportunity costs.

Explanation:

A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit

The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.

4 0
3 years ago
Young Co. issues $800,000 of 10% bonds dated January 1, Year 1. Interest is payable semiannually on June 30 and December 31. The
Andreyy89

Answer:

Young should report proceeds from the sale of bonds as equal to $864,884

Explanation:

The proceeds on the sale of bonds is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are paid semi-annually and the par value of the bond that will be paid at the end of the 5 years.

During the 5 years, there are 10 equal periodic coupon payments that will be made. In each  year, the total coupon paid will be

$800,000*0.1=$80,000

and this payment will be split into two equal payments equal to \frac{$80,000}{2} = $40,000 . This stream of cash-flows is an ordinary annuity

The periodic market rate is equal to \frac{0.08}{2}=0.04

The  PV of the cashflows = PV of the coupon payments + PV of the par value of the bond

=$40,000*PV Annuity Factor for 10 periods at 4%+ $800,000*\frac{1}{(1+0.04)^10}

=$40,000*8.1109+$800,000*0.67556=$864,884

4 0
3 years ago
Which of the following individuals are not subject to the net investment income tax?
Whitepunk [10]

Answer:

NRAs stands for Non- resident Aliens and who is single

Explanation:

NRAs stands for Non- resident Aliens are the one who are not subject to the Net Investment Income Tax. If NRA, is married to the citizen or the resident of U.S (United States) and has planning to make, an election in the section 6013 (g), which is to be treated or act toward as the resident alien for the motive of filing as the Married Filing Jointly.

The concluding regulations offer special rules to those couples and a correlate section for the NIIT (Net investment income tax).

Note: The options are missing, so providing the direct answer.

5 0
3 years ago
Other questions:
  • Which type of cable is required by ata/66 and above?
    14·1 answer
  • Which of the following is generally NOT true and an advantage of going public? a. Facilitates stockholder diversification. b. Ma
    5·1 answer
  • Your portfolio is comprised of 30 percent of stock X, 25 percent of stock Y, and 45 percent of stock Z. Stock X has a beta of 1.
    6·1 answer
  • Widely varying consumption ratios: work against the implementation of activity-based costing. indicate an out-of-control product
    11·1 answer
  • Discuss the reasons for and against borrowing money
    11·1 answer
  • Carla has applied for a loan. Which condition makes it likely that she will get an unsecured loan?A.She has a very good credit h
    15·2 answers
  • Using the Cuusoo System, Lego develops ideas that are generated by the many children and adults who create a model, take photos,
    9·1 answer
  • In order to be​ successful, money in a fiduciary monetary system must have
    6·1 answer
  • Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually,
    10·1 answer
  • Why do you think Artificial Intelligence does not work for every face?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!