Round House Furniture offers credit to its customers at a rate of 1.15 percent per month. What is the effective annual rate (EAR) on this credit offer? Can the calculator and excel solution be provided?
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Round House Furniture offers credit to its customers at a rate of 1.15 percent per month. What is the effective annual rate (EAR) on this credit offer?
Can the calculator and excel solution be provided?
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- A discount electronics store advertises the following financing arrangement: “We don’t offer you confusing interest rates. We’ll just divide your total cost by 11 and you can pay us that amount each month for a year.” The first payment is due on the date of sale and the remaining eleven payments at monthly intervals thereafter. Calculate the effective annual interest rate the store’s customers are paying on their loans. Report your answer to the nearest two decimal places (i.e., x.xx).Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount ? for paying cash. For credit card purchases, the company receives 97% of the purchase price one-half month later. Determine the value of ? that would make the two payment methods equivalent if the company’s annual rate of return is 14%.Match the following credit terms with the correct description. APR [Choose ] [Choose ] Known as the Annual Percentage Rate. Some credit cards charge these. They can be charged for membership and you may be required to pay them once a year. Credit cards that offer these give you cash or points for purchases you make. Occurs when you don't pay your monthly payment on time. These occur when you transfer your balance to a different card. When you move an existing balance to another credit card or account. The least amount of money you are obligated to pay back on a monthly basis to avoid fees and penalties. [Choose ] [Choose ] [Choose ] [Choose ] Fees Rewards Finance Charges Late fees Balance Transfer Minimum payment
- A department store has offered you a credit card that charges interest at 1.75% per month compounded monthly. What is the nominal interest (annual percentage) rate for this credit card? What is the effective annual interest rate?A consumer loan requires monthly payments, in equal amounts, $700.00. The next payment is due in one month. Assume that the appropriate discount rate is 21% (APR). What is the effective annual rate? (show them in excel spreadsheet, write your own present value formulas, don't use Excel built-in functions.Your company has been offered credit terms on its purchases of 4/30, net 90days. What will be the nominal annual cost of trade credit if your companypays on the 35th day after receiving the invoice? (Assume a 365-day year.) Show your complete solution.