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2 years ago

How do banks make money off of the credit they issue

Business

1 answer:

LenaWriter [7]2 years ago

3 0

Answer:

The primary way that banks make money is interest from credit card accounts. When a cardholder fails to repay their entire balance in a given month, interest fees are charged to the account. ... When a retailer accepts a credit card payment, a percentage of the sale goes to the card's issuing ban

Explanation:

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When frank sells a pie to jean instead of sarah, the economic value created in society is lower because of the difference in:.

Free_Kalibri [48]

When frank sells a pie to jean instead of sarah, the economic value created in society is lower because of the difference in consumer surplus.

What is consumer surplus?

Consumer surplus occurs when a consumer pays a price that is lesser for a goods than the actual price they are willing to pay for a product.

Difference in consumer surplus occurs because Frank now has more customers and he can now sell at a price lower than the consumer would pay.

Therefore, Frank sells a pie to jean instead of sarah,when the economic value created in society is lower because of the difference in consumer surplus.

Learn more on consumer surplus here,

brainly.com/question/3209988

5 0

2 years ago

On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 5 years. The contract rat

Ivahew [28]

Answer:

Debit interest expense - - - - $15,351.72

Credit cash - - - - - - - $14,000

Discount payable on bond - - - - - $1,351.72

Explanation:

Parker value =$400,000

contract rate = 7% = 0.07

Market rate = 8%

Discounted bond = $383,793

First interest payment using straight lime amortization;

Debit interest expense :

8% of $383,793

0.08 × $383,793 = $30,703.44

$30,703.44 ÷ 2 = $15,351.72(semi annually)

Credit cash;

7% of $400,000

0.07 × $400,000 = $28,000

$28,000÷2 = $14,000(semi annually)

Discount on bond payable ;

Debit interest expense - Credit cash

$15,351.72 - $14,000 =$1,351.72= Discount amortization

4 0

2 years ago

Amend Inc. debited Accounts Receivable and credited Allowance for Uncollectible Accounts to reestablish an account previously wr

goldfiish [28.3K]

Answer:

Cash; account receivable

Explanation:

The journal entry to reestablish an account previously written off is given below:

Cash Dr XXXXX

To account receivable XXXXX

(being the reestablish an account previously written off is recorded)

Here the cash is debited as it increased the assets and account receivable is credited as it decreased the assets

5 0

3 years ago

Yeâ€™ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by d

mihalych1998 [28]

Answer:

The EOQ is 642

The reorder point is 2,699

Explanation:

In order to calculate the EOQ we would have to calculate the following formila:

EOQ=√2DS/H

According to the given data we have the following:

D = 55,000

S = 21

H=40%*purchase cost

H=0.4*14 = 5.6

Therefore, EOQ=√(2*55,000*21)/5.6

EOQ=642

To calculate the reorder point If a service level of 98% is desired during the reorder interval, we would have to use the following formula:

reorder point=dL+z√σ∧2dL+σ∧2Ld∧2

reorder point=(7*205.22)+√(2.05*√(5∧2*7)+(3∧2*205.22∧2)

reorder point=2,699

7 0

3 years ago

What's the advantages of ms word ?

mash [69]

Answer:

MS WORD IS A MULTI PURPOSE WORD PROCESSOR WHICH HELPS IN CREATING

BROCHURES
LETTERS
GREETING CARDS etc.

<h2>please follow me and mark it brainliest</h2>

6 0

2 years ago

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