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: risks that investors undertake when they choose to purchase shares of companies

A: Company tends to issue shares in the market to raise fund for expanding operation of firm. But…

Q: xplain the benefits of financial education?

A: Financial Education: Financial education refers to the process of learnin about money, making…

Q: Which financial Market do Retail credit products e.g. Mortgage bonds, short term loans, long term…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: Why is using home equity a risky way to make purchases that do not add to your assets? It's not…

A: Home equity loans make it easier for homeowners to borrow money from equity at home. However, equity…

Q: Differentiate the following investments by determining its advantage or disadvantage Money market…

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Q: How important is CFO in a rural bank? What he can do that others cannot?

A: As a top executive, the chief financial officer is in charge of a company's financial operations.…

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

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Q: Insights about business government relations

A: Business economics is a discipline of economics that studies how firms deal with financial,…

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: The connection between financial management and financial market

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Q: 10 Think back to a challenge you faced at work or in the classroom when you had to solve a problem…

A:

Q: Which of the following is not something you need to consider when planning for retirement how much…

A: The consumption smoothing is an important concept in consumer behaviour where an individual…

Q: People invest because they want to make money. True or false

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

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Q: Alex is planning to engage his company in international business, advise him on best international…

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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: business

A: Being business minded implies being able to see that there always exists a better way. It is the…

Q: How can an inaccurate estimate of assets have serious consequences?

A: Answer - Estimates of assets - It is approximate value of assets of original value of assets which…

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: what are the roles of financial managers?

A: Financial Manager plays the critical role when it comes to the financial management of firm.

Q: How is saving important?

A: Saving: - Saving is that part of income that is not consumed or kept as reserves by the people in an…

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Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…

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A: A professional helps people to manage and plan the finances prudently. Such planning helps the…

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.

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A: In economics and also in business(accounting), it is vital to weigh the assets that a company owns…

Q: The presence of a sinking fund.

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Q: How do investment banks works?

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Q: How can small businesses get out of debt?

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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: