2. In the U.S. one still encounters electronic equipment retailers who quote consumer financing in the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. In the U.S. one still encounters electronic equipment retailers who quote consumer financing in the following manner: Term of the financing is two years; The interest rate is 6%; a. b. C. For every $1,000 you purchase on credit, the interest will be 6% x 2 = 12%; Therefore, principal plus interest = $1,120; Divided by 24 months means that you must pay $1,120/24 = $46.67 per month Since the customer will not be borrowing $1,000 over the life of the financing arrangement, and the quoted interest is charged on the entire $1,000 for two years, the effective must be higher than the quoted rate. What is the effective rate per month? What is the effective rate per year? What is the effective rate per year, on a semi-annually compounded basis? 2. In the U.S. one still encounters electronic equipment retailers who quote consumer financing in the following manner: Term of the financing is two years; The interest rate is 6%; a. b. C. For every $1,000 you purchase on credit, the interest will be 6% x 2 = 12%; Therefore, principal plus interest = $1,120; Divided by 24 months means that you must pay $1,120/24 = $46.67 per month Since the customer will not be borrowing $1,000 over the life of the financing arrangement, and the quoted interest is charged on the entire $1,000 for two years, the effective must be higher than the quoted rate. What is the effective rate per month? What is the effective rate per year? What is the effective rate per year, on a semi-annually compounded basis?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Select the necessary words from the list of possibilities to complete the following statements. Statements 1. The of SEC registrants selects the company's audit firm. 2. The auditors must assess the...
-
The Bohr model of the hydrogen atom pictures the electron as a tiny particle moving in a circular orbit about a stationary proton. In the lowest-energy orbit the distance from the proton to the...
-
Considering the call-return pattern, how many overflows and underflows (each of which causes a register save/restore) will occur with a window size of a. 5? b. 8? c. 16?
-
How do architectural patterns differ from structural patterns? Provide examples.
-
Suresh Co. expects its five departments to yield the following income for next year. Recompute and prepare the departmental income statements (including a combined total column) for the company under...
-
1. For Firm G, compute cost of direct labor used. 2. For Firm G, compute cost of direct materials used. 3. For Firm G, compute cost of goods manufactured. 4. For Firm G, compute cost of goods sold....
-
1. January 1- You have a beginning balance in inventory of $20,000 (5 items). During the year you purchase an additional 5 items for $5,000 each with terms of 75% down and the rest due in 1 year. You...
-
A spray can containing a propellant gas at twice atmospheric pressure (202 kPa) and having a volume of 126.00 cm is at 28C. It is then tossed into an open fire. (Warning: Do not do this experiment;...
-
An auto repair shop borrowed $14000 to be repaid by semi dash annual payments over 8 years. Interest on the loan is 9 % compounded semi dash annually.(a) What is the size of the periodic payment?(b)...
-
What should be done when the information life cycle of the data collected by an organization ends? Group of answer choices Mask the data Tokenize the data Destroy the data Protect the data
-
What value will the following program print out? Show all your computations step by step. #include int main(void) { int x=2, y=17, z=11, result=5; result -= 2 * z % 13+y/3+x; \\"result - something"...
-
What is the output of the given code block? = 10 a b = 20 C = 30 if a % b > 1: print(a * b) elif b % a == 10: print (b a) print(c % 11) ww
-
The last four years of returns for a stock are as follows: Year 1: -4% Year 2: +28% Year 3: +12% Year 4: +4% Part a: What is the average annual return?
-
Describe the Operations (+,,*,/) that can cause negligible addition (NA), error magnification (EM), or subtractive cancellation (SC) in calculating ?((x^2)+1) - x . Give the range of where they might...
-
Assuming you work for a New Zealand company exporting a container of kiwi fruit to Haiti. The customs official informs you that there is a delay in clearing your container and it may last a month....
-
The California Public Employees Retirement System (CalPERS) is one of the worlds largest pension funds and one of the earliest to divest stocks of firms that did not meet its ESG criteria. For...
-
As the CEO of a fast-moving firm (such as Zoom), use the strategy tripod to analyze what the leading challenges for your firms internationalization will be.
-
Show that the group \(D_{3}\) has two 1D irreps in addition to the 2D irrep found in Problem 5.6 , and construct the character table. Derive the two-dimensional matrix representation Data from...
-
The matrix representation of \(\mathrm{C}_{3 \mathrm{v}}\) given in Eq. (5.14) was constructed with respect to the particular coordinate system defined by the unit vectors \(\boldsymbol{e}_{1}\) and...
-
Prove that the action of the symmetry operations \(\sigma_{b}\) and \(\sigma_{c}\) on the basis vectors \(\boldsymbol{e}_{1}\) and \(\boldsymbol{e}_{2}\) in Fig. 5.10 are given by the matrix...
Study smarter with the SolutionInn App