The benefits of using a credit card and any disadvantages involved in it

Question

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Answer 1

Question

Chapter 8, Problem 1RQ

Summary Introduction

To discuss: The benefits of using a credit card and any disadvantages involved in it

Expert Solution & Answer

Explanation of Solution

The advantages of credit cards include:

Credit cards permit the ease of buying products and services without bringing a checkbook or a huge amount of cash.
Credit cards offer free financing to users until the statement of credit card arrives.
Credit cards also provide rewards programs that will accrue discounts, points, and other benefits.

The major disadvantage is that:

Credit card tempts the users to spend beyond their requirements.
Increased debt and high rate of interest.

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The maturity value of an $35,000 non-interest-bearing, simple discount 4%, 120-day note is:

Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $18,905 at 10% for 4 years. Use ordinary interest as needed. Calculate the simple interest note proceeds. Calculate the simple discount note proceeds.

What you're solving for Solving for maturity value, discount period, bank discount, and proceeds of a note. What's given in the problem Face value: $55300 Rate of interest: 10% Length of note: 95 days Date of note: August 23rd Date note discounted: September 18th Bank discount rate:9 percent

Answer 2

Question

Chapter 8, Problem 1RQ

Summary Introduction

To discuss: The benefits of using a credit card and any disadvantages involved in it

Expert Solution & Answer

Explanation of Solution

The advantages of credit cards include:

Credit cards permit the ease of buying products and services without bringing a checkbook or a huge amount of cash.
Credit cards offer free financing to users until the statement of credit card arrives.
Credit cards also provide rewards programs that will accrue discounts, points, and other benefits.

The major disadvantage is that:

Credit card tempts the users to spend beyond their requirements.
Increased debt and high rate of interest.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1RQ

Summary Introduction

To discuss: The benefits of using a credit card and any disadvantages involved in it

Expert Solution & Answer

Explanation of Solution

The advantages of credit cards include:

Credit cards permit the ease of buying products and services without bringing a checkbook or a huge amount of cash.
Credit cards offer free financing to users until the statement of credit card arrives.
Credit cards also provide rewards programs that will accrue discounts, points, and other benefits.

The major disadvantage is that:

Credit card tempts the users to spend beyond their requirements.
Increased debt and high rate of interest.

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Answer 4

Question

Chapter 8, Problem 1RQ

Summary Introduction

To discuss: The benefits of using a credit card and any disadvantages involved in it

Expert Solution & Answer

Explanation of Solution

The advantages of credit cards include:

Credit cards permit the ease of buying products and services without bringing a checkbook or a huge amount of cash.
Credit cards offer free financing to users until the statement of credit card arrives.
Credit cards also provide rewards programs that will accrue discounts, points, and other benefits.

The major disadvantage is that:

Credit card tempts the users to spend beyond their requirements.
Increased debt and high rate of interest.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1RQ

Summary Introduction

To discuss: The benefits of using a credit card and any disadvantages involved in it

Expert Solution & Answer

Explanation of Solution

The advantages of credit cards include:

Credit cards permit the ease of buying products and services without bringing a checkbook or a huge amount of cash.
Credit cards offer free financing to users until the statement of credit card arrives.
Credit cards also provide rewards programs that will accrue discounts, points, and other benefits.

The major disadvantage is that:

Credit card tempts the users to spend beyond their requirements.
Increased debt and high rate of interest.

Answer 6

Chapter 8, Problem 1RQ

Summary Introduction

To discuss: The benefits of using a credit card and any disadvantages involved in it

Expert Solution & Answer

Explanation of Solution

The advantages of credit cards include:

Credit cards permit the ease of buying products and services without bringing a checkbook or a huge amount of cash.
Credit cards offer free financing to users until the statement of credit card arrives.
Credit cards also provide rewards programs that will accrue discounts, points, and other benefits.

The major disadvantage is that:

Credit card tempts the users to spend beyond their requirements.
Increased debt and high rate of interest.

Answer 7

Chapter 8, Problem 1RQ

Summary Introduction

To discuss: The benefits of using a credit card and any disadvantages involved in it

Answer 8

Expert Solution & Answer

Explanation of Solution

The advantages of credit cards include:

Credit cards permit the ease of buying products and services without bringing a checkbook or a huge amount of cash.
Credit cards offer free financing to users until the statement of credit card arrives.
Credit cards also provide rewards programs that will accrue discounts, points, and other benefits.

The major disadvantage is that: