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alekssr [168]
3 years ago
5

Your bank card has an APR of 21% and there is a 3% fee for cash advances. The bank starts charging interest on cash advances imm

ediately. You get a cash advance of $500 on the first day of the month. You get your credit card bill at the end of the month. What is the approximate total finance charge you will pay on this cash advance for the month
Business
1 answer:
avanturin [10]3 years ago
6 0

Answer:

Total finance charge=$23.75

Explanation:

<em>The amount charged for the use of the fund by a bank is called interest rate. Here it is quoted as 21% per annum but we will need to determine the approximate monthly rate by dividing by 12</em>.

The total finance charge will be equal = Interest rate + advance fee

Monthly interest rate = 21/12 =1.75%

Interest payment = 1.75%× $500=$8.75

Advance fee = 3%× $500= $15

Total finance charge = $8.75 +  $15= $23.75

Total finance charge=$23.75

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DON Corp. is contemplating the purchase of a machine that will produce net after-tax cash savings of $20,000 per year for five y
Allushta [10]

Answer:

$74,932.66

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow from year 1 to 4 = $20,000

Cash flow in year 5 = $25,000

I = 12%

Present value = $74,932.66

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
4 years ago
The wage rate is $10 per hour and the last worker hired by the firm increased output by 100 units. Computers rent for $100 per h
const2013 [10]

Answer:

To minimise cost, the firm should lay off worker and rent more computer as it give more output per dollar invested on it.  This reduce the fixed cost of the company drastically and increase the production of the company.  The marginal cost of production and marginal revenue are economic parameter, which help to determine the amount of output and price per unit of input that will maximise the profits. The point at which marginal revenue is equal to marginal cost maximise the profit.

5 0
3 years ago
The board of directors of Capstone Inc. declared a $0.90 per share cash dividend on its $2 par common stock. On the date of decl
Bas_tet [7]

Answer:

A. Dividends 11,700 Dividends Payable 11,700

Explanation:

The journal entry to record the dividend declared is shown below:

Dividend A/c Dr $11,700

     To Dividend payable $11,700

(Being the dividend is declared)

The computation is shown below:

= (Number of shares issued - treasury stock) × cash dividend per share

= (20,000 shares - 7,000 shares) × $0.90

= 13,000 shares × $0.90

= $11,700

6 0
4 years ago
A pay policy line Question 36 options: can be generated using a statistical method called regression analysis. can seldom provid
pentagon [3]

Answer:

A pay policy line <u>reflects the pay structure in the market, which always matches rates in the organization.</u>

Explanation:

A pay policy line is the salary level and organization chooses to pay its employees compared to the standard salary level in the market.

Organizations would prefer not to overpay or underpay their employees. Therefore they consider the standard pay structure of the market and match the amount they pay their employees to this structure.

8 0
4 years ago
When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The cross-price elastici
Inga [223]

Answer:

d. 0; unrelated.

Explanation:

Cross elasticity of demand is the degree of responsiveness of demand for a particular product to a change in the price of another product.

A change in price of a product will lead to a change in demand for another product if the two goods are either goods of close substitutes or if they are complements. If two goods are not related, the change in price of one will not have any impact on the demand for the other good.

In this question, the cross elasticity is zero because biro and pencil are not related.

3 0
3 years ago
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