Answer:
To increase profit from interests by increasing duration of balance repayment.
Explanation:
The purpose of every business is to make profits and the reason why every credit card company includes a minimum payment is not just to make it easier to pay but by only making minimum payments, credit card holders could be kept as customers and paying interests on debt for longer.
Secondly, the more the periods the more likely you'll default on some of them and pay penalty fees which means additional income for the companies
Answer: $1392
Explanation:
The depreciation rate under straight line is =1/5=0.2
The depreciation rate under double declining is = 0.2 × 2 = 0.4
Depreciation expense for the first year = 0.4 × $5800 = $2320.
At the beginning of year two, net book value = $5800 - $2320 = $3480
Depreciation expense for year two = 0.4 × $3480 = $1392
Answer: $12
Explanation:
The reasonable production cost for a backpack in this segment will be calculated as 50% multiplied by the average retail price which will be:
= 50% × $24
= 50/100 × $24
= 0.5 × $24
= $12
Answer: 3 Variable Rate Loan.
The variable rate loan best describes the loan agreement because the rate can vary and become a different percent over the course of the loan agreement. When you agree to loan terms with variable interest rates it is important to remember when they will change and check the interest rate amounts at any given time over the course of the loan, sometimes the loan terms jump drastically if not paid by the initial given rate.
