American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 7.00%, with interest paid monthly, what is the card's EFF%?

Q: Crane Company purchased merchandise with an invoice price of $3400 and credit terms of 2/10, n/30.…

A: Credit terms is the agreement between the seller and the buyer for the goods sold on credit in which…

Q: The VISA CREDIT CARD charges 3% interest per month on the unpaid balance for purchases made on this…

A: The conceptual formula used:

Q: A 102-day note for $85 bears simple interest at 4.5% and is sold 22 days before maturity to a bank…

A: Notes Receivables: It is possible to get a note receivable by writing a promise to receive a…

Q: A credit card is advertised with an annual percentage rate (APR) of 24%. The advert also states that…

A: Effective annual rate is the annual interest rate for a nominal rate which is compounded multiple…

Q: ARAB Bank pays 0.074 percent, compounded weekly (based on 52 weeks), on an 8-month certificate of…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: If you sign a discount note for $4,400 at a bank discount rate of 8%, for 90 days, what is the…

A: Effective annual rate is defined as the actual rate that is earned on the investment. It shows the…

Q: ARAB Bank pays 0.07 percent, compounded weekly (based on 52 weeks), on an 8-month certificate of…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: the apr on the card is 12%, and you are not going to use the cardinal paid in full. assume you owe…

A: Credit debt = $1,383 Interest Rate = 12% APR Monthly Payment = 140

Q: The interest charged on a $392000 note payable, at the rate of 6%, on a 60-day note would be (Use…

A: Notes payable are the liabilities for any business which will be payable at the time of due date or…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: When the benefits of compounding over time are taken into account, an effective annual interest rate…

Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…

A: Trade credit refers to the practice of businesses extending credit terms to their customers,…

Q: Haatimvopened an RRSP deposit account on December​ 1, 2008, with a deposit of ​$1400. He added $1400…

A: Future value is the accumulated sum of money that is invested with the motive to earn a certain…

Q: A promissory note is a written statement agreeing to pay a sum of money either on demand or at a…

A: Promissory notes are like notes payable. Here the issuer of the note promises to pay the other party…

Q: You have just received credit card applications from two banks, A and B. The interest terms on your…

A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 12%, on a 90-day,…

A: Interest charged = Notes Payable x Interest rate x 90/360

Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: The annual percentage rate(APR) is the interest rate (nominal rate) determined by the credit card…

Q: First National Bank charges 13.4 percent compounded monthly on its business loans. First United Bank…

A: The effective annual rate (EAR) is the annual interest rate that takes into account the effect of…

Q: card

A: The effective annual rate is the real rate of return earned on the investment. It does not take into…

Q: a bank offered its clients a credit card which had a rate of 18.55% compounded daily. if it added…

A: The nominal rate is the stated interest rate or advertised rate on a financial product or loan…

Q: On the April 12 interest payment date, the outstanding balance on Eastern Yard Service's revolving…

A: The amount paid by the borrower on the outstanding amount of the loan to the lenders (Banks) on the…

Q: annual interest rate on a credit card is 24.99%. If a payment of $100.00 is made each month, how…

A: We need to use NPER function in excel to calculate time to payoff loan. The formula is:…

Q: You have asked Raider Bank for a $20,000 signature loan, where you will be charged 1% per month…

A: It seems there might be a mistake or some missing information in this question. Let me clarify a few…

Q: Big Dom’s Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…

A: APR = given monthly rate * 12 months

Q: Your bank is offering a certificate of deposit with an APR of 6.02% compounded monthly. What is the…

A: Effective annual rate is computed by following formula-EAR = - 1 Where,EAR = effective annual rate…

Q: British Columbia Savings offers three-year term deposits at 10.8% compounded annually while your…

A: The compounding technique is related to the concept of Time value of money. The time value of money…

Q: First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank…

A: Effective annual rate refers to the interest rate charged by the lender to the borrower after…

Q: Connie put $7,525 into a term deposit on March 10th. The deposit earns a simple interest rate of 5%.…

A: Deposit amount = $7,525 Period from march 10th to july 4 = 116 days Interest rate = 5%

Q: A note that is dated January 1st with a face value of P5000 comes due on March 15th with interest at…

A: Formula: Interest amount = Face value of bond x Interest rate x Time period.

Q: How can we calculate the total annual interest payment for a credit card debt of $ 1,000?

A: We should pay the credit card bill by the end of credit free period to avoid interest charges upon…

Q: promissory note for ​$800 dated January​, 15​, requires an interest payment of ​$ 130at maturity. If…

A: Promissory notes are notes that carry the specified interest rate and promises to bearer of note…

Q: you sign a discount note for $9,500 at a bank discount rate of 9% for 3 months, what is the…

A: A discount note is a short-term debt obligation issued by highly-rated corporations or…

Q: A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank…

A: It is very important for the investor to compare the annual yields of the investment instead of…

Q: Clark’s Landscaping bills customers subject to terms 2/25, n/60. Required: Compute the annual…

A: Annual Interest Rate= Discount % / 100 - Discount % * 365 / days paid early

Q: Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: Compound = n = Monthly = 12Annual Percentage Rate = APR = 19%

Q: A dealer quotes a customer 7.35% to borrow for one year with interest paid monthly. The customer…

A: Here, The Interest Rate is 7.35% Compounding Period is Monthly Customer preference Compounding…

Q: A note that is dated January 1st with a face value of P5000 comes due on the owner of the note sells…

A: Discount in credit terms is a method utilized to understand receivables for deal with cash flow…

Q: Windsor, Inc. has a 30-day note that carries an annual interest rate of 9%. If the amount of the…

A: A written commitment to pay someone is referred to as a promissory note. The person making the…

Q: Master Card and other credit card issuers must by law print the Annual Percentage Rate on their…

A: Effective annual rate(EAR) measures the annual percentage rate over a period of time after giving…

Q: Company X sells on a 2/15, net 60, basis. Company Y buys goods with an invoice of $4,500.   a. How…

A: Credit sales refer to the sale of goods where the buyer pays after receiving the goods. It is very…

Q: A commercial bank offers you a credit card with an annual percentage rate APR = 9%, compounding…

A: Annual Percentage rate = APR = 9%Compound = n = Monthly = 12

Q: ) If you make no payments and no additional purchases for one year, what will be the amount owed at…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.