Which of the following interest rate rates do most credit card companies stay in? A. 1-7 % B. 8-13 % C. 30-40 % D. 14-29 %

Q: A bank advertises mortgages at 14% compounded continuously. What is the effective annual interest?

A: Effective Annual Interest: It represents the annual interest earned on an investment or charged on…

Q: Using the pro-forma table below, what is your levered IRR? Purchase Price Loan Proceeds Loan Fees…

A: In a real estate, purchase sale transaction, the equity IRR or the levered IRR is to be found. All…

Q: Two companies can borrow from the banking sector on the following terms (please check table below).…

A: Reasoning The Role of Interest Rates: A Risk AssessmentImagine you're a lender considering loaning…

Q: Money market deposit accounts (MMDAS) O a. have floating maturity dates. O b. are federally insured.…

A: 1. a. have floating maturity dates. 2 d. allow check writing privileges above a stipulated minimum…

Q: 10. A bank note is discounted at 6% in order to take advantage of the cash discount On an invoice…

A: The credit terms are 2/15, n/45 that means 2% cash discount is allowed if the payment has been…

Q: Differentiate between free and costly trade credit.What is the formula for determining the…

A: Answer: Free trade and costly trade credit: If trading is on credit, the suppliers of products often…

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: Use the following information regarding the allocation of loan portfolios in different sectors for…

A: The SD of asset allocation refers to the risk that the investor faces because of the asset…

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: Evaluating alternative notesA borrower has two alternatives for a loan: (1) issue a $360,000,…

A: The financial position of the company can be arrived from the income statement prepared by the…

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 Collateralized Mortgage Obligation (CMO) principal balance is $1,000,000,000. The pass

A: Solution: (3). Answer is $2,654,087 The month 1 CMO total cash flow from pass thru interest,…

Q: Bank ABC offers loan terms at 12.25% APR compounded daily, while Bank XYZ offers loan terms at…

A: Bank ABC offer:- Nominal interest rate is 12.25% Compounding frequency is 365(Daily) Bank XYZ's…

Q: merchant receives an invoice for $8000 with terms 2/10, n/50. What is the maximum interest rate that…

A: Interest rate:The cost of borrowing money in a percentage is known as the interest rate. Interest…

Q: Bank Oman issued certificate of deposit with face value 60000 OMR and 270 days to maturity.Calculate…

A: The question is related to Calculation of Matuirty value of CD.  Maturity Value = Face Value +…

Q: Use the following information for the next two questions. BPI Davao provided the following…

A: A loss allowance is the amount of money that a business sets aside to cover the potential losses…

Q: Typical features of a Syndicated Loan are Select one: a. Floating Rate of Interest O b. Based on…

A: Syndicate loan- These are loans provided by a group of lender banks together to a single large…

Q: .The portion of the selling price paid by the customer at the time of purchase is called ________.…

A: Customers have to pay some amount to purchase on loan.

Q: Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and…

A: The objective of the question is to calculate the bank discount, proceeds, and effective rate for a…

Q: What is Debt Service?

A: Step 1 The amount of money required to pay interest on the loan with the principal over some time is…

Q: The APR is the annual rate that is required by law to be disclosed on loan documents. The EAR…

A: preferred stock are the stock which has property of equity as well as debt.

Q: Descriptors are provided below for six situations involving notes receivable being discounted at a…

A: Notes receivable is an asset for the business entity because it represents the amount receivable.

Q: q17 Which of the following types of loans has lower interest rate compared to others? a. Line of…

A: Which of the following types of loans has lower interest rate compared to others?   a. Line of…

Q: Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and…

A: Bank discount = Face value *Rate * term/ 360

Q: Mobile Co. issued a $47,563, 60-day, discounted note to Guarantee Bank. The discount rate is 6%. At…

A: Note: Discounted notes are issued at discount. The amount to be paid by the borrower at the time of…

Q: Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and…

A: BANK DISCOUNT FORMULA: bank discount=face value×rate×time where, time is in years

Q: Loeb Corp. frequently borrows from the bank in order to maintain sufficient operating cash. The…

A: Interest is the amount which is payable on the Loan taken, In the present case simple interest…

Q: What is the advantage of a variable-interest loan? Protects the borrower from rising interest rates…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The following loan is paid in full before the date of maturity. Find the amount of uneaned interest.…

A: There are various method which can be used to compute the interest charged on a loan. Rule 78 is one…

Q: Problem 2-18 Functions of Financial Markets (L03) Consider the table shown below to answer the…

A: Market capitalization is also known as Market cap. It refers to the total market value of the…

Q: Calculate the bank discount and proceeds for the following simple discount notes. Usethe ordinary…

A: Notes are a financial instrument which is used by the borrower to borrow the fund or to purchase…

Q: If Nominal Interest Rate is 6% and the inflation premium is 2% the real interest rate earned by the…

A: Nominal interest rate is the stated rate of interest on the financial instrument whereas real…

Q: hich of the following is not a way in which banks lend short-term unsecured loans? a. Through a…

A: Banks give short term credits to the business to increase the business and grow business and provide…

Q: Solve for a simple discount note: (Round

A: Maturity Value is the complete face value of the note that the issuer is required to return at the…

Q: Which of the following is a form of financing consist of short term unsecured promissory note issued…

A: A credit rating is a measurement of a person or business entity's ability to repay a financial…

Q: A 62-day note for $115 bears interest at 5.75% and is sold 26 days before the due date to a bank…

A: Following are the proceeds 62-day Promissory Note is for $ 115  Simple Interest rate = 5.75%…

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: answe

A: The net rate of return is the return on an asset after expenses such as taxes, depreciation, and…

Q: Through credits cards lines with a certain credit limit Through a guaranteed credit line that has a…

A: Banks provide  short term credit to the business for maintaining the liquidity and enough working…

Q: Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and…

A: Bank discount = Face value*discount rate* term in days/total days Proceeds = Face value - bank…

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.