8. Suppose that the balance of a certain credit card is P43,744.53. The credit card company charges 3.5% per month How much is the total balance owed to the credit card company?

Q: Original Media Sign Incorporated sells on account. Recently, Original reported the following figures…

A: The account receivable refers to the amount that the company will receive against the sales or…

Q: What is the effective rate of a credit card whose Annual Interest Rate is 28.99% and compounds…

A: Annual interest rate = 0.2899 or 28.99% Number of compounding in a year = 365 Effective rate = ?…

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: Wyatt Oil extends credit on terms of 1/15, net 30. The percentage of Wyatt's receivables that are…

A: Credit term meaning = If the amount is paid within 15 days a discount of 1% will be allowed…

Q: What is the receivables turnover?

A: Turnover means the is the amount of sales by the business. It is sometimes called as income of the…

Q: Company X has trade credit policy 1/10 N45. If you can borrow from a bank at 9,5% annual rate, would…

A: 1/10 net 45: 1/10 net 45 is a trade credit extended to the buyer from the seller which means the…

Q: . The average daily balance on Crandall's credit card is $4,637.23. His APR is 22%. What is his…

A: Annual percentage rate (APR) : It is rate of return calculated for 12 months return. It is given…

Q: ABCD Corporation has credit sales of $10,640,000 and receivables of $1,520,000. a. What is the…

A: Receivables turnover = Credit sales / Accounts receivable Average collection period = 365/…

Q: Your credit card company charges you 1.32 percent per month. What is the APR on your credit card?…

A: APR is the annual percentage rate that is charged on the credit cards.

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) Write an iterative equation for the monthly unpaid balance Un. (b) What level will the unpaid…

A: The "Unpaid Balance" on a credit card refers to the outstanding amount of money that you owe to the…

Q: Last year your company had average accounts receivable of $2 million. Credit sales were $24 million.…

A: The question is based on the concept of Financial Management.

Q: Your credit card company charges you 1.45 percent per month. What is the EAR on your credit card?…

A: Answer to above question is OPTION (C) i.e. 18.86% Formula to calculate Effective Annual Interest…

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 credit card has an average daily balance of ​$2,833.84 and the monthly periodic rate is 1.337​%.…

A: Finance Charges for the month  = Average Daily balance X Periodic Rate

Q: A company has a 30-day credit terms to its customers. It has a total of P120,000 in their accounts…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

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: Credit card companies have different policies and rates. One company's policies are as follows: Part…

A: The finance charge is as follows: 0118 times for the first $500. 0098 times for the next $500. 0086…

Q: The following information relates to ReDo Corporation: $28,184,000 $316,199,000 $64,115,000 What is…

A: Receivables collection period is the average time required to receive payment from debtors. It is…

Q: 3a. You are paying an effective annual rate of 18.974 percent on your credit card. The interest is…

A: Solution:- Effective annual rate means the net interest rate for an year, after effect of all the…

Q: Suppose your credit card issuer states that it charges a 17.00% nominal annual rate, but you must…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: An FI has estimated the following annual costs for its demand deposits: management cost per account…

A: Regulators impose reserve requirements on demand deposits of banks and FIs. The reserve requirements…

Q: The Cardex Credit Card Company charges a nominal 24 percent interest on overdue accounts, compounded…

A: Effective interest rate is the interest rate that is earned or paid after considering the…

Q: MULTIPLE CHOICE  Milch Corporation sells on terms of net/90. Their accounts receivable are on…

A: The average investment in receivables can be estimated with the help of days sales outstanding…

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

A: Given, Monthly interest rate is 1.5%Previous balance is $2645.51

Q: ts, which amounts to monthly compounding. What is the effective annual rate?   a. 24.23%

A: Investors and consumers can compare interest rates across a range of financial products with…

Q: What is the firm's effective cost of borrowing?

A: Effective Cost of Borrowing: It represents the interest rate on the mortgage or loan after the…

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

A: The finance charges are the charges that credit card company collects from customers on the amount…

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

A: Credit card finance charges or interest is the charge that credit card companies impose on the card…

Q: 7. Assuming a 365-day year, how long (in average days) does the collectibles from customers stay as…

A: In order to increase the sales revenue, the business entity sold the goods on a credit basis. Out of…

Q: Michaels Corp. has a current accounts receivable balance of $623,410. Credit sales for the year just…

A: Introduction: Accounts receivable turnover is the number of times a year that a business pays its…

Q: 5) According to a recent WalletHub report, the average credit card balance is $10,848 per American…

A: Credit card:A credit card is a financial tool that enables individuals to make purchases on credit,…

Q: 11. Suppose you have a balance of $5400 on your credit card, which charges an APR of 18%. If you…

A: Monthly payment refers to an amount that is paid at every month for the repayment of loan amount…

Q: The Carhart Corporation sells on credit terms of net 25. Its accounts are, on average, 8 days past…

A: The amount of money that is owed to a company by its customers for products or services that have…

Q: (a)What is the effective annual interest rate on this lending arrangement? (Do not round your…

A: First, we need to determine the monthly interest the company has to pay if they took a line of…

Q: Find the average daily balance for the billing period. Round to the nearest cent The average daily…

A: Given in the question: The payment towards the payment of credit card balance which has been made…

Q: First National bank charges 12.4 percent compounded monthly on its business loans. First United Bank…

A: Effective annual interest rate is the real rate that we earn on our savings or paid onto a loan when…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.