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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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3 years ago
Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and
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Answer:

maximum profit = $7500

so correct option is c  $7500

Explanation:

given data

mean = 500

standard deviation = 300

cost = $10

price = $25

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to find out

What is its maximum profit

solution

we get here maximum profit that is express as

maximum profit = mean × ( price - cost )   ..................................1

put here value in equation 1 we get maximum profit

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3 years ago
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