Pharoah Landscaping has an average collection period of 36 days for its accounts receivable. Currently, Pharoah factors all of its receivables at a 2 percent discount. What is the effective annual interest rate on the financing from the factor? (Use 365 days for calculation. Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Effective annual interest rate %
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Pharoah Landscaping has an average collection period of 36 days for its accounts receivable. Currently, Pharoah factors all of its receivables at a 2 percent discount. What is the effective annual interest rate on the financing from the factor? (Use 365 days for calculation. Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Effective annual interest rate %
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- First National Bank charges 10.4 percent compounded monthly on its business loans. First United Bank charges 10.6 percent compounded semiannually. Calculate the EAR for each bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) First National Bank % First United Bank % As a potential borrower, which bank would you go to for a new loan?A firm sells its accounts receivables to a factor at a 3.5% discount. The average collection period is 3 month. a. What is the effective annual interest rate on this arrangement? (Round your answer to 2 decimal places.) b. What is the implicit effective annual interest rate if the average collection period is 5 months? (Round your answer to 2 decimal places.)Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $200 balance, 15%, $50 payment () previous balance method $2.77 x (b) adjusted balance method $2.09 x Þ (c) average daily balance method $233 x
- Bank ZLY is charging customers a loan rate of 9.2% APR compounded monthly. What is the equivalent effective annual rate (EAR)? A) 9.31% B) 9.42% C) 9.60% D) 9.71%A credit card offers financing at an APR of 22.5 percent, with monthly compounding on outstanding charges. What is the effective annual rate (EAR)? (Round answer to 2 decimal places, e.g. 52.75%.)The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given in the following table: Days 1-3: $150 (initial balance) Days 4-20: $200 ($50 purchase) Days 21-30: $50 ($150 payment) What is the finance charge, on the average daily balance, for this card over this 1 month period? finance charge = $ [ ? ] %3D Round to the nearest hundredth. Enter 3- 2021 Acelu Corporation All Rights Reserved.
- Second National Bank charges an 8.5% effective annual rate on its business loans. Assuming monthly compounding, calculate the monthly period rate on this loan. (Enter percentages as decimals and round to 4 decimals). MAKE sure to round to 4 decimals and show work on how you got the answer please.A credit card company charges 23.0% interest per year, compounded monthly. What effective annual interest rate does the company charge? Note: The effective annual interest rate is the return on an investment or the rate owed in interest on a loan when compounding is taken into account. O 25.71% 25.22% 25.59% O24.95% GAssume that you start with a balance of $3900 on your credit card. During the first month, you charge $400, and during the second month, you charge $650. Assume that your credit card charges a 27% APR and that each month you make only the minimum payment of 2.5% of the balance. Complete the following table. (Round your answers to the nearest cent.) Previous Balance Finance Charge(+) Purchases(+) Payments(-) New Balance Month 1 3900 Correct. 87.75 Correct. 400 Correct. 97.50Correct. 3890.25 incorrect. Month 2 3890.25 Incorrect. 87.52 Incorrect. 650 Correct. 97.25Incorrect. 3880.27Incorrect.
- A company has a collection period of 36 days and factors all receivables immediately at a discount of 2.6 percent. What is the effective annual cost of borrowing? Assume 365 days per year. Multiple Choice O 27.06 percent 30.62 percent 29.72 percent 26.42 percent 28.07 percent. Calculating EAR First National Bank charges 11.4 percent compounded monthly on its business loans. First United Bank charges 11.6 percent compounded semiannually. As a potential borrower, to which bank would you go for a new loan ?First National Bank charges 13.4 percent compounded monthly on its business loans. First United Bank charges 13.7 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) As a potential borrower, which bank would you go to for a new loan?
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