A credit card company charges an interest rate of 1.375% per month on the unpaid balance of all accounts. The annual interest rate, they claim, is 12(1.375%)=16.5%. What is the effective rate of interest per year being charged by the company?

Q: Compare credit, savings, and investment services available to the consumer from financial…

A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…

Q: What is the importance of financila analysis and planning in a business? Include examples

A: Financial analysis is the process of analysing the matters including all kinds of transactions done…

Q: discuss why people working in the finance industry might make unethical decisions.please give a…

A: Introduction and Example Regardless of whether it's a chief or forefront worker, it appears to be…

Q: Why are all businesses required to record and report on their financial status?

A: The financial statement is also known as the income statement that is the chronological record of…

Q: What are commercial loans?

A: Loan is a type of debt instrument in which a sum of money is borrowed by an individual or a firm…

Q: How does the Time Value of Money help people plan for retirement?

A: The Time Value of Money (TVM) plays a critical role in retirement planning by helping people…

Q: at is a bond?     A certificate representing a loan from an investor to a corporation or…

A: A bond is a debt instrument that a business or government issues to raise funds, and pays fixed…

Q: Does owning a share of stock in a company makes you a major decision maker for that company?

A: Owning a share of stock in a company makes you a shareholder, but you can't interfere in day to day…

Q: You have decided to buy a house. You can get a mortgage rate of 5.5 percent, and you want your…

A: Given: Mortgage rate=5.5% Payments=$1175 or less Number of years=20 To find: Amount that could be…

Q: Why are the financial statements important in business?

A: Financial statements are the written records which conveys the activities of business and financial…

Q: Examine the economic incentives and risks associated with starting and running a business in the UK.

A: Economic Incentives:Market Access: The UK offers access to a large and diverse market, both…

Q: Which of the following is not an example of a financial resource? a. online training for employees…

A: Financial resources typically refer to assets or funds that can be readily converted into cash or…

Q: How can small businesses get out of debt?

A: Small businesses need to have proper pplanning and management of cost and other factors. If there is…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: