subject
Business, 28.11.2019 01:31 lizzyhearts

This problem illustrates a deceptive way of quoting interest rates called add-on interest. imagine that you see an advertisement for crazy judy’s stereo city that reads something like this: "$1,000 instant credit! 16.5% simple interest! three years to pay! low, low monthly payments! " you’re not exactly sure what all this means and somebody has spilled ink over the apr on the loan contract, so you ask the manager for clarification. judy explains that if you borrow $1,000 for three years at 16.5 percent interest, in three years you will owe: $1,000 × 1.1653 = $1,000 × 1.58117 = $1,581.17judy recognizes that coming up with $1,581.17 all at once might be a strain, so she lets you make "low, low monthly payments" of $1,581.17/36=$43.92 per month, even though this is extra bookkeeping work for her. what is the apr on this loan?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 05:00
Which of the following are considered needs? check all that apply
Answers: 1
question
Business, 22.06.2019 07:40
Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000
Answers: 1
question
Business, 22.06.2019 11:00
What is the advantage of developing criteria for assessing the effectiveness of business products and processes? a. assessment criteria are answers. b.assessment criteria are inexpensive. c.assessment criteria provide you with a list of relevant things to measure. d.assessment criteria provide you with a list of people to contact to learn more about process mentoring.
Answers: 3
question
Business, 22.06.2019 15:20
Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?
Answers: 2
You know the right answer?
This problem illustrates a deceptive way of quoting interest rates called add-on interest. imagine t...
Questions
question
English, 06.07.2019 01:00
question
Mathematics, 06.07.2019 01:00
question
Mathematics, 06.07.2019 01:00
question
Geography, 06.07.2019 01:00
Questions on the website: 13722361