8. Phoebe realizes that she has charged too much on her credit card and has racked up $7,000 in debt. If she can pay $200 each month and the card charges 17 percent APR (compounded monthly), how long will it take her to pay off the debt?

Q: Describe the approaches for Comparing Defender and Challenger?

A: The following are the approaches for comparing defender and challenger: Cash flow approach: Treat…

Q: What is meant by risk? Why must it be managed properly?

A: Risk can be defined as the probability of an event occurring and having consequences. Standard…

Q: What is meant by the term antidilution? Give an example.

A: An increase in the earnings per share refers to anti-dilution. This results on account of the…

Q: State the criticism of MM approach.

A: The Markowitz Model (MM), developed by Harry Markowitz in 1952, is a mathematical model that seeks…

Q: You are a consultant to a large manufacturing corporation considering a project with the following…

A: NPV is the capital budgeting tool that can be used for determining the feasibility of investment…

Q: Explain in detail, using examples where possible, the difference between hedging, speculation

A: In the world of finance and investments hedging and speculation are important concepts. Many…

Q: Question: Are count standards and ethical standards the same? TRUE OR FALSE

A: Ethical standards are a set of principles developed by the organization's founding members  to…

Q: Explain Deficiency Judgment?

A: To borrow funds, borrower might be required to mortgage its property to the lender. In case that…

Q: Decision-usefulness approach focuses on the relevance of information being communicated.” Explain…

A: The decision-usefulness approach is a fundamental concept in financial accounting that emphasizes…

Q: What rules or policies should be developed to avoid the ethical problem?

A: Ethical problems: These kinds of problems arise when while making decisions neither of the options…

Q: What is a reasonableness test?

A: Reasonableness tests is an analytical procedure used to examine the validity of the accounting…

Q: Give the meaning of Trust.

A: Beneficiary/ Fiduciary Trustee  A trust has a beneficiary and a trustee. The individual who is the…

Q: Citing an example, distinguish between ethical issues and legal issues.

A: Distinguish between ethical issues and legal issues. Ethics are moral obligations that are…

Q: Highlight concept of faithful representation and is it valid or not?

A: The concept of Faithful representation advocates that the financial statements and information…

Q: What makes information irrelevant to decision making?

A: Irrelevant information is a part of the information collected for decision-making from various…

Q: examine the challenges you encounter during and after acquring buderim group?

A: Buderim is a locally owned company which makes its revenue from the sale , manufacturing and…

Q: Compare consulting and assurance services.

A: Consulting is classified as the practice of giving insight on a subject to a third party for a fee.…

Q: Explain the specific relationship between risk and reward and why this relationship must be true.

A: Risk refers to probability for loss of investment value by an investor whereas Reward refers to…

Q: Describe positive and negative externalities.

A: Externalities are benefits (positive effect) or costs (negative effects) on outsiders which…

Q: Explain what is meant by the term decision model.

A: Every business has to take important decisions now and then. A proper understanding of the situation…

Q: Contrast the advantages and disadvantages of CASE tools. What should determine whether CASE is used?

A: CASE Tools:   CASE stands for Computer Aided Software Engineering Tools. CASE is used for the…

Q: What are the types of situations that result in troubleddebt?

A: Troubled debts can result in two different situations, which are as…

Q: What Are the Relevant Facts?

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Differentiate between applied and actual FOH with two examples, support your response with…

A: Overhead are those expenses which are not directly consumed to make a product or render service but…

Q: efine the term materiality and explain why it may be d

A: Materiality is quite important in preparing the financial statement and it is very important to the…

Q: Explain the steps that apply your own sense of right and wrong to ethical dilemmas.

A: Ethics is an internal mechanism of an individual which can be applied to various situations to…

Q: relate to merit system practices would you say that the system works well why or why not present…

A: The system of merit ensures that the selection is grounded on the ability of the person only to…

Q: Define impairment? Give an example?

A: Impairment: The intangible assets which have indefinite lives are not amortized but are tested…

Q: A Framework for decision making: a. can help reduce the unexpected consequences of our actions. b.…

A: a. can help reduce the unexpected consequences of our actions. Here's why:Decision-making frameworks…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.