A store will give you a 3% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month

Q: Friendly's Quick Loans, Incorporated, offers you $7.50 today but you must repay $9.85 when you get…

A: We need to use effective annual return (EAR) formula below.EAR =( 1 +Periodic interest rate)number…

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

A: A credit card is a card that is issued by the bank to the users to enable that holder to pay a…

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: alculate the APR and rEAR of non-free trade credit associated with credit terms of 3/25, net 85, and…

A: The term trade credit is a term used for short-term financing for buyers and it helps in improving…

Q: Assume the credit terms offered to your firm by your suppliers are 2​/20​, net 40. Calculate the…

A: Discount rate (r) = 0.02 Discount days (D) = 20 Credit term (C) = 40   Cost of trade credit = ?

Q: Friendly's Quick Loans, Incorporated, offers you "$4.20 for $5.20 or I knock on your door." This…

A: The interest rate on a credit card or loan is commonly expressed as APR, or annual percentage rate.…

Q: 2b. You decide to take advantage of the store's payment plan. The payment plan's terms are as…

A: As per Bartleby honor code, when multiple questions are there, the expert is required only to solve…

Q: As a jewelry store manager, you want to offer credit, with interest on outstanding balances paid…

A: Nominal rate compounded quarterly from your bank(r) =5%Number of compounding(n) =12

Q: This card has an introductory APR of 0%.  Credit cards often do this to entice customers.…

A: Introductory APR of 0% means that the card holder can make purchases or transfer a balance  without…

Q: A particular credit card calculates interest using the unpaid balance method. The monthly interest…

A: Interest is an amount charged for borrowing or lending money. Interest is calculated based on the…

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: be received and recorded, and that the month is 30 days long. (Round your answers to the nearest…

A: Finance charges are a way for a lender to get compensated for supplying cash or giving credit to a…

Q: You wish to buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are…

A: Borrowings are the loans taken from banks or non-banking financial institutions, to meet its…

Q: Ricky Ripov's Pawn Shop charges an interest rate of 15 percent per month on loans to its customers.…

A: Effective annual rate = (1 + r)n - 1 r = interest rate per month n = number of months

Q: Your credit card company charges you 21.3% APR (annual percentage rate). If they calculate interest…

A: 1. Given: APR = 21.3% Interest calcualtion: Monthly   To calculate:  Periodic Interest Rate

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: Suppose your MasterCard calculates interest using the average daily balance method, and the monthly…

A: Average Daily Balance( Credit Card):The amount of interest to be charged to a borrower on an…

Q: If your Visa credit card has an APR of 14.49%, compounded monthly and your current balance is…

A: APR is 14.49% Compounded monthly Current Balance is $425.69 Time period 1 year Minimum monthly…

Q: Complete the following take table. Round your answer to the nearest cent. Table 1 month- Previous…

A: Month 1: Outstanding balance in beginning = 610$ APR = 24%  Finance charge = 610$ * 24% * 1/12 =…

Q: please step by step solution.

A: To find the current month's finance charge using the unpaid balance method, follow these steps: Step…

Q: One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a…

A: Any amount due has to be repaid. The repayment is done usually on fixed periodic payment basis. The…

Q: Assume the credit terms offered to your firm by your suppliers are 2/15, net 30 . Calculate the cost…

A: Discount % = 2% Credit Period = 30 daysDiscount Period = 15 daysNumber of day in a year = 365

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: Assume that you have a balance of $3400 on your credit card and that you make no more charges.…

A: Credit Card is short-term credit facility provided to retail customers by financing entities that…

Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1500, in response to which…

A: The interest on the credit card is charged monthly. The amount of payment reduces the outstanding…

Q: For the car loan described, give the following information. A car dealer will sell you a used car…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for finite…

Q: Suppose that you owe $2500 on a credit card   that charges 18% APR and you pay either the…

A: The number of months it will take to pay off the loan can be seen from the amortization table.

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

A: Information Provided: Balance = $4000 Rate = 16% Payment = $2500 Days it take for payment = 10 Days

Q: 13) A customer with unpaid balance for merchandise of $210.00 from the previous month has been…

A: Finance charge as per unpaid balance method is computed by multiplying the unpaid balance with the…

Q: You have a credit card with an APR of 20%. You begin with a balance of $600 in response to which you…

A: Given: APR = 20% Beginning balance = 600

Q: None

A: To complete the table, we need to calculate the balance for each month considering the charges, the…

Q: Kangaroo Autos is offering free credit on a new $13,500 car. You pay $1,500 down and then $400 a…

A: Following formula will be used to calculate the present value:

Q: You have a balance of $12,000 for your tuition on your American Express credit card. Assume that you…

A: Minimum payment refers to the amount that remains at the end of each month for maintaining the…

Q: One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a…

A: In mortgage loan the monthly payment are amortized over the loan period. The monthly payment here…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.