Master Card 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 19.00%, with interest paid monthly, what is the card's EFF%? a.18.58% b. 19.52% с. 20.75% d. 21.94% e. 22.65%

Q: The credit card with the transactions described in the popup below uses the average daily balance…

A: The average daily balance takes into account the invested or due sum at the end of each day of the…

Q: прапу What formula should Hardy Company uses add-on interest? Gordon Company signed a note payable…

A: When a person or company borrows money, a formal agreement for repayment of money and stated rate of…

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 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: Amount Bills Term Discount Rate Date of Bills (OMR) (months) (% p.a.) January 17 275,000 4 12 If the…

A: Rebate on bill discounted is the that amount of discount which is received, but not earned. This is…

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: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged = Loan amount × Interest rate × interest period

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: A partial payment is made on the date indicated. Use the United States rule to determine the balance…

A:

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day,…

A: Notes payable is a financial instrument used to raise funds for financial obligations. Interest is…

Q: On a 365-day basis, using a trade credit terms of 2/10, net 30, and payment is made on the twentieth…

A: In case of trade credit, 2% discount is being given if payment is made till 10th day.

Q: Prefix Supply Company received a 120-day, 6% note for $500,000, dated April 12 from a customer on…

A: Journal entries are the primary reporting of the business transactions in the books of accounts,…

Q: Master Card and other credit card issuers must print the nominal annual rate (APR) on their monthly…

A: The effective annual rate (EAR) is a measure of the total amount of interest or return earned on an…

Q: average investment in accounts receivable?

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

Q: Calculate the finance charge for a credit card that has been given an average daily balance and…

A: One technique a credit card issuer uses to determine the finance charges or interest on your card is…

Q: A supermarket charges 2.75% per month on credit purchases. What is the equivalent nominal annual…

A: Nominal rate is interest rate without the impact of compounding interest rate and it is like simple…

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: Beginning Balances for Quentin's Four Credit Cards Card A Card B Card C Card D Balance $4,134.00…

A: Amount of Interest paid can be calculated as the difference between the total amount paid through…

Q: Pacific Bank pays a 7.00% nominal rate on deposits, with monthly compounding. What effective annual…

A: The effective annual rate (EAR) is calculated using the formula,

Q: On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and…

A: On making payment till 10th day there is 2% discount. If payment is made between 11th till 30th day,…

Q: Calculate the missing information on the revolving credit account. Interest is calculated on the…

A: Formula: Annual percentage rate = Monthly rate x 12 Months

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: The credit card with the itemized billing statement below uses the average daily balance method to…

A: Credit cards are offered by financial institutions to customers to purchase certain items out of…

Q: A bank offered a commercial customer a one-year loan. A discounted note with a nominal rate of 13%…

A: A loan charges a percentage of the principal as interest to a borrower (the amount borrowed). The…

Q: If the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period?…

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Q: bank offers personal loans at 4.7%p.a compounding monthly. The effective annual rate of interest…

A: Effective rate is rate of return after consider the impact of compounding on that and is more than…

Q: elect the correct answer and explain What is the discount to a promissory note with a face value of…

A: In this we have calculate the discount on note using simple interest rate given.

Q: The credit card with the transactions described in the popup below uses the average daily balance…

A: The average daily balance is to be computed by dividing the total amount by the number of days in…

Q: balance method. The table below shows your activity for the month of July. Date July 1 July 9 July…

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Q: What is the annual rate of interest being charged on a 3-month note receivable of $51,000 if the…

A: Introduction: A note receivable is a documented promise to pay a set amount of money to another…

Q: On October 13, The business sold merchandise for 198.000 TL (including 10% VAT) FOB Destination. The…

A: The selling of assets is recorded by debiting to notes receivable and crediting the machinery…

Q: On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net…

A: If the payment is done in 10th day, the discount is given for 2 else full payment is required if…

Q: Consider the following credit card activity for the month of September: Date Balance September 1 $0…

A: Interest Expenses:An interest expense is simply the cost that is incurred by an entity for borrowed…

Q: A credit card has a monthly rate of 1.54%. In the January 1-January 31 itemized billing, the average…

A: Here,Monthly Rate is 1.54%Average Daily Balance is $875.35Time Period is 1st Jan to 31st JanDue Date…

Q: Calculate the effective annual rate for a certificate of deposit that pays 4.1% APR compounded…

A: Effective annual rate is the real rate of return which includes the effect of compounding in its…

Q: Calculate the missing information on the revolving credit account. Interest is calculated on the…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: Calculate the missing information on the revolving credit account. Interest is calculated on the…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day,…

A: Interest charged by the bank = Amount of notes payable x rate of interest x no. of days / 360

Q: Anderson Co. issued a $40,073, 60-day, discounted note to National Bank. The discount rate is 7%. At…

A: Maturity value refers to an amount that is due at the time of maturity after holding the investment…

Q: Calculate the missing information on the following revolving credit accounts. Interest is calculated…

A: a) The word annual percentage rate (APR) alludes to the loan cost charged every year to banks and…

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.