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: If you sign a discount note for $5,500 at a bank discount rate of 9% for 3 months, what is the…

A: Effective interest rate is the amount of money saved on an investment when compounding concept is…

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: On February 1, Electronic Warehouse Co. issued a 45-day note with a face amount of $80,000 to Yamura…

A: Notes are issued by the organisation for receivables and payables that are to be received or paid in…

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: A particular credit card calculates interest using the unpaid balance method. The monthly interest…

A: Interest is an amount charged for borrowing or lending money. Interest is calculated based on 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: Using the unpaid balance method, find the current month's finance charge on a credit card account…

A: The Finance charge is basically the expense or cost which one incurs whether being the individual,…

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: Perfect Pet Company gave a creditor a 90-day, 6% note payable for $28,000 on December 1, 2019. What…

A: Principal amount = $ 28000 Coupon rate = 6% Time frame = 1 month period

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: Roni Lockard signed a $26,500 simple discount promissory note at a certain bank. The discount rate…

A: Discount note: Selling the note with discount value which means less than the face value.

Q: average investment in accounts receivable?

A: Average investment in accounts receivable = Accounts receivable average collection period * Annual…

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: Credit Card Statement Transaction Description Previous balance, $2653.02 June 1 Billing date June 6…

A: When a person or a company needs money for the purpose of purchasing something, they can apply for a…

Q: Leopard Co. uses the installment sales method to recognize revenue. Customers pay the installment…

A: ANSWER : Notes reported at the present value which is amount net of which interest is to be…

Q: Additional information: 1. The company uses a perpetual system 2. The company uses control…

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

Q: A credit card has an average daily balance of $2,861.56 and the monthly periodic rate is 1.295%.…

A: Average Daily Balance of Credit Card = $2,861.56 Monthly Interest Rate = 1.295%

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: The following table show's a credit cardholder's transactions for his credit card with statement…

A: A credit card is a financial tool and payment method that allows cardholders to make purchases on…

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: 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: On 1st July 2020 Star LLC has accepted a note receivable for RO 2000 from one of the accounts…

A: Interest on note receivable shall be calculated from date of issuance till date of maturity.

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: The Beta Company made a sale for $340,000 on credit. It accepted a note receivable from the…

A: Solution-  = $340000 * 4%  = 13600 Interest is calculated by applying Interest rate to the principle…

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: am.111.

A: The objective of the question is to calculate the amount of money Selkirk Company will receive from…

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.