A company has a collection period of 40 days and factors all receivables immediately at a discount of 1.8 percent. What is the effective annual cost of borrowing? Assume 365 days per year. Multiple Choice 18.03% 16.70% 17.68% 15.71% 16.73% Please answer fast i give you upvote.

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Variables in the question:Balance=$700Rate(r)=17%Payment=$650Assume 365 days in a year

Q: A $31,000 new car loan is taken out with the terms 3​% APR for 48 months. How much are monthly…

A: Loan amount (PV)=$31,000 Rate per period (i)=0.0312=0.0025 Duration (n)=48 periods Monthly amount…

Q: You have a carryover balance of $968 on a credit card that has a 15.99% annual percentage rate…

A: Here,Carryover Balance is $968APR is 15.99%Payment is 8% of Ending Balace of Month

Q: Assume that you start with a balance of $3900 on your credit card.During the first month you charge…

A: Here, Balance on Credit Card is $3900 APR is 29% Charges for first Month is $400 Charges for Second…

Q: A company has a collection period of 37 days and factors all receivables immediately at a discount…

A: The company sells credit to their customer. The average number of days it takes a company to get…

Q: Use the loan amortization table: Purchase price of a used car $5,533, Down payment  $1,153, number…

A: Lookup table are used to calculate the loan amortization and are used as shortcuts to calculate the…

Q: NAB offers a car loan that will require you to pay 8% per annum, compounded weekly. Which of the…

A: Effective annual rate is the equivalent rate in comparison with the interest rate that is compounded…

Q: Vou have a credit card with an APR. of 16%. Vou begin with a balance of $750. In the first month you…

A: For credit card, charges are purchases on credit card and payments are payment on the balance of…

Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1000, in response to which…

A: Finance charge Any fees that represent the credit cost, or borrowing cost. It is an interest accrued…

Q: You're prepared to make monthly payments of $360, beginning at the end of this month, into an…

A: Given:FV = $25,390P = $360r (monthly interest rate)n=12 (compounded monthly)

Q: You would like to purchase a car with a negotiated price of $39,000, and the dealer offers financing…

A: Present value refers to whether money received in the current period or today is worth more than…

Q: Find the discount and proceeds on a $3,250​ face-value note for nine months if the discount rate is…

A: Given that,face value = $3,250​ discount rate = 9.2% = 0.092time = 9 months =  years

Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…

A: Given: Particulars Amount Monthly payment $46.34 Years 3.5 Interest rate 21% Additional…

Q: A student borrows ​$68,300 at 7.2​% compounded monthly. Find the monthly payment and total…

A: Here, Borrowed Amount is $68,300 Interest Rate is 7.2% Compounding Period is Monthly i.e 12 Time…

Q: Unpaid balance Up to $500 Over $500 New balance Under $200 Over $200 Minimum payment $10 5% of new…

A: (a) The finance charge for the month =  Previous balance = $55.10 So, finance charge = 1.5% upto 500…

Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…

A: APR is the annual rate of interest which is charged on a loan. The borrower needs to make loan…

Q: A store will give a 2.5% disount on the cost of purchase if you pay cash today. The payment is due…

A: Effective annual rate (EAR) is a measure of the true annual interest rate that takes into account…

Q: One of your customers has just made a purchase in the amount of $26,400. You have agreed to payments…

A: A loan is a debt amount borrowed by one person from another person at a predetermined financial…

Q: nth. Round all values to the nearest cent. A. What is the finance charge for this first month? B.…

A: finance fee is the interest  pay on a loan you owe,If you carry a debt from one payment month to…

Q: A municipal bond carries a coupon rate of 4.25% and is trading at par. What would be the equivalent…

A: A bond indicates a debt instrument that obligates the issuer to pay the par value at the expiration…

Q: Bank ZLY is charging customers a loan rate of 9.2% APR compounded monthly.  What is the equivalent…

A: Equivalent Effective Annual rate= It refers to that interest rate which is actually earned on a…

Q: Solve $140.10 per month; cash price $5,600; down payment $0 Cash or trade months with…

A: Here, To Find: APR =?

Q: A bank offers a home buyer a 30-year loan at 6% per year. If the home buyer borrows $140,000 from…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Information Provided: Balance = $600 Rate = 18% Payment = $550 Term = 10/30 days

Q: a) Let's say you invest $10,000 into each account. What is the final amount after 10 years? b) How…

A: Future Value: It represents the future worth of the present amount and is estimated by compounding…

Q: A consumer loan requires monthly payments, in e amounts, $700.00. The next payment is due in or…

A: Effective rate is the rate after considering the impact of compounding on the interest rate.

Q: A store will give you a 1.00% discount on the cost of your purchase if you pay cash today.…

A: Given information :Discount rate = 1%Time period for payment due = 1 month Purchase price (Assumed)…

Q: Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount � for…

A: Present Value of each alternative should be same for indifferent decision. Present value is…

Q: FILA Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10…

A: Given: Particulars Amount Opening balance 350 Interest rate 18% Payment 300 Days 10…