Q: f your credit card calculates interest based on 17.35% APR, compounded quarterly : a) What are…
A: The effective annual rate of interest is the real return on the savings account when the effects of…
Q: The previous statement for your credit card had a balance of $770. You make a payment of $360 but…
A: Given information: Previous balance is $770 Payment of $360 Additional purchase of $220 APR of 24%
Q: 6. Using the daily balance method of calculating interest, how much interest will you owe on a $500…
A: Average daily balance total's the each balance of the daily cycle and divides the number of days…
Q: 2. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…
A: Solution Concept Simple interest rate is the rate that does not have the effect of compounding To…
Q: 6) Assume you have a credit card that has a 24% APR and you have an a daily balance of $1,500.00.…
A: Finance charge refers tp the borrowing cost of the money involving the fees as well as interest and…
Q: QUESTION 9 Your monthly statement from your bank credit card shows that the monthly rate of interest…
A: Using excel Effective rate function
Q: How long would you have to wait for a deposit of $1,625 to earn $34 in interest? Assume that the…
A: Interest = Principal * Rate * Time
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Charges that must be paid in order to avail of the credit card services are referred to as finance…
Q: O/S Balance on January 01, 2021
A: Outstanding balance refers to the amount which is to be owed on any type of debt as interest…
Q: 4. You borrowed $10,000 on a 10% discounted loan for a period of 8 months. a. What is the loan's…
A: Mortgage/ Borrowings: A mortgage represents a credit given to the borrower by the lender for the…
Q: A bank pays interest monthly with an EAR of 13%. What is the periodic interest rate applicable per…
A: In this question we require to calculate the periodic interest rate applicable per month if EAR is…
Q: a credit card charges 2.3% interest per month on the average daily balance if the unpaid balance is…
A: Interest expenses = Average balance * interest rate Balance due with interest = Unpaid Balance +…
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A: Using NPER function in excel
Q: 1. A five-month term deposit of $10,000 at the Scotiabank earned $175 in interest. What annual rate…
A: Here the deposit is of 5 Month and the deposit amount is $10,000 We can calculate the annual rate by…
Q: Suppose Tom has a credit card debt of $4000 which has an annual rate of interest 18%. The minimum…
A: Given, Credit card debt amount is $4000. Annual rate 18% Minimum payment $60.
Q: Suppose a person has a total credit card debt of $1.375 that has a 12% yearly interest rate. This…
A: Interest rate on savings provides the earnings to the investors while interest rate on credit card…
Q: A credit card holder purchased an item P6,000 on credit with a monthly interest rate of 3% and 5%…
A: To find the remaining balance we need to subtract the amount that is paid and it will be paid on the…
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Finance charge It is the charge related to money borrowed over a period of time. It includes the…
Q: 3a. You are paying an effective annual rate of 18.974 percent on your credit card. The interest is…
A: Solution:- Effective annual rate means the net interest rate for an year, after effect of all the…
Q: Calculate the finance charge for a credit card that has the given average daily balance and interest…
A: Calculation of Finance Charge:The finance charge is $2.05.Excel Spreadsheet:
Q: 2. If a nine-month term deposit at a bank earns a simple interest rate of 9% per annum, how much…
A: Simple interest is the type of interest that is not accumulated on the previous balance and…
Q: 2. Given the following information about a credit card account, determine the average daily balance…
A:
Q: On January 1, you deposit K100 in an account that pays a nominal interest rate of 11.33463%, with…
A: Computation:
Q: Assume you have a credit card that has a 24% APR and you have an average daily balance of $1,500.00.…
A: Credit card companies lend a certain amount to the borrower and charge interest over that amount…
Q: Suppose I secure a simple interest note for $4500. The length of the note is 102 months and the…
A: Interest = Principal * rate * time Interest = $4500 * 6.20% * 102 /12 Interest = $2,371.50
Q: How much interest will you have to pay for a credit card balance of $875 that is 1 month overdue, if…
A: Credit Card is short term debt instrument which allows holder of such card to purchase on credit and…
Q: Determine the finance charge for a credit card that has the given average daily balance and interest…
A: Finance charge can be defined as that charge which a borrower is required to pay to the lender for…
Q: 12. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…
A: Simple discount loan is the loan which is given to the receiver after applying a simple discount…
Q: effective interest rate
A: Formula: effective interest rate= [1+ interest rate/period)^ period]-1 *100
Q: Suppose that you took out a loan at 10% interest for 283 days. If the amount of interest was…
A: In this question we need to find the amount of principal borrowed if amount of interest was $930.41…
Q: The interest on a $4,800 note at 5% for 4 months is ________.
A: Formula: Interest amount = Note value x Interest rate x Time period.
Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge…
A: Given, Starting balance is $3900. First month charge is $400. Second month charge is $650 Rate of…
Q: Using the daily balance method of calculating interest, how much interest will you owe on a $500…
A: Given, Credit card balance = $500 interest = 20% = 20/100 = 0.2 time = 3 weeks = 21/365
Q: What is the simple interest to the nearest cent on a credit card balance of $1,150.00 at 11%…
A: Simple interest is defined as the type of interest, which is easy and quick method for calculating…
Q: A firm charges its credit customers 1.67% interest per month. What is the effective interest rate?
A: Effective interest rate is the real return on savings account. It is given as: R = 1+inn-1
Q: Your credit card statement says that the card has a 0.0562% interest per day. What is the actual…
A: In this question we require to compute the actual annual interest rate if daily interest rate is…
Q: Calculate the finance charge for a credit card that has a given average daily balance and…
A: Credit card charges interest on basis of monthly.
Q: 9. A bank offers a savings account with a 3% annual interest rate, compounded monthly. What is the…
A: In this question we need to calculate the effective annual interest rate i.e. EAR.
Q: A credit card quotes a rate as 21.5% compounded monthly. a) What is the effective annual interest…
A: This question has two parts : In part (a) we need to compute the effective annual interest rate…
Q: a credit card has a 30-day billing period, a 20-day grace period, and charges an interest rate of…
A: In this case, we use the average daily balance method to calculate the interest charged. It is one…
Q: Macapagal Bank advertises savings account interest as 5.5 percent compounded weekly and chequing…
A: Because it accounts for the effects of compounding, the effective annual interest rate is the…
Q: 5. If a credit union pays 4.125% interest compounded quarterly, what is the effective rate of…
A: Interest rate (r) = 4.125% Number of compounding per year (m) = 4
Q: 10. A loan of $14,064was repaid at the end of 7 months. What size repayment check (principal and…
A: The conceptual formula in the mathematical equation:
Q: A bank offers a Certificate of Deposit (CD) at a rate of 6% compounded monthly. Another bank offers…
A: Certificate of deposits(CDs) is a kind of debt instrument having a short-term to mid-term maturity…
Q: What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A discount of 2…
A: Given, credit terms = 2/10, n/30 n/30 indicates that the payment should be made within 30 days from…
Q: Assume that you have a balance of $3400 on your credit card and that you make no more charges.…
A: Credit card is a source to borrow the money from banks or other institutions and this borrowed…
Q: $2,800 earned simple interest of $43.40 in 6 months, what was the simple interest rate
A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…
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