Answer:
Hmmmmmmmm its động
Explanation:
Yw
Answer:
I don’t know
Explanation:
KNK bank receives a deposit of GHS 1,000 and observes a cash ratio of 10%. Assuming there is no cash drain(cashless economy) and all rxcess reserves are pushed into loans. a. what is the maximum amount of money that can be pushed into loans. b. what is the total increase in money supply with the bank?
The maximum amount of money which can be created from the deposit will be GHS 1,000 and the total increase in the money supply with the bank will be GHS 1,000 too.
Money supply has to do with the total amount of money that's in circulation in a particular period of time in an economy.
A) Based on the information given, the maximum amount of money which can be created from the deposit will be GHS 1,000.
B. The total increase in the money supply with the bank will be GHS 1,000. The reason for this is because there were no additional information that was given.
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Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?
a. $2,000.
b. $4,000.
c. $6,000.
d. $10,000.
Answer:
Spartan Corporation
The amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours is:
b. $4,000.
Explanation:
a) Data and Calculations:
Estimated manufacturing overhead = $200,000
Estimated activity level = 10,000 direct labor-hours
Predetermined overhead rate = $20 ($200,000/10,000) per direct labor-hour
Applied overhead to a job that required 200 direct labor-hours = $4,000 (200 * $20)
If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is: (Note: EOM indicates the last day of each month.)
Answer:
EOM depreciation expense $100
accumulated depreciation $100
Explanation:
Depreciation is a method used in expensing the cost of an asset.
Yearly Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($3750 - $150) / 3 = $1200
Monthly depreciation = yearly depreciation / 12
1200 /12 = 100
Accumulated depreciation is sum of depreciation expense
There are two preferred methods to accessing the database. One is to have newly instantiated object call the data access object. The other is to let the controller access the data access object.
a. True
b. False
EcoFabrics has budgeted overhead costs of $1,162,350. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 553,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $442,800 and $719,550 is allocated to the design cost pool. Additional information related to these pools is as follows.
Wool Cotton Total
Machine hours 123,000 123,000 246,000
Number of setups 1,230 615 1,845
1. Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12.25.)
2. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.
3. Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.)
4. What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?
Answer:
EcoFabrics
1. Overhead Rates using activity-based costing:
Cutting = $1.80 per machine hour
Design = $390 per setup
2. Allocation of overhead:
Wool Cotton
Cutting $221,400 $221,400
Design 479,700 239,850
Total allocated $701,100 $461,250
3. Overhead rate using the traditional approach:
Predetermined overhead rate = $2.10
4. Allocation of overhead:
Wool Cotton
Total allocated $581,175 $581,175
Explanation:
a) Data and Calculations:
Budgeted overhead costs = $1,162,350
Estimated direct labor hours = 553,500
Activity Cost Cost Drivers Overhead Costs Wool Cotton Total
Pools
Cutting Machine hours $442,800 123,000 123,000 246,000
Design Number of setups 719,550 1,230 615 1,845
1. Overhead Rates using activity-based costing:
Cutting = $1.80 ($442,800/246,000) per machine hour
Design = $390 ($719,550/1,845) per setup
2. Allocation of overhead:
Wool Cotton
Cutting $221,400 ($1.80 * 123,000) $221,400 ($1.80 * 123,000)
Design 479,700 ($390 * 1,230) 239,850 ($390 * 615)
Total allocated $701,100 $461,250
3. Overhead rate using the traditional approach:
Predetermined overhead rate = $2.10 ($1,162,350/553,500)
4. Allocation of overhead:
Wool Cotton
Total allocated $581,175 ($1,162,350 * 50%) $581,175 ($1,162,350 * 50%)
A single commercial bank must meet a 25 percent reserve requirement. If the bank has no excess reserves initially and $5,000 of cash is deposited in the bank, it can increase its loans by a maximum of Group of answer choices $5,000. $1,250. $120,000. $3,750.
Answer:
$3,750
Explanation:
Calculation to determine what it can increase its loans by
Using this formula
Loan increase=Excess reserves-(Reserve requirement percentage* Excess reserves)
Let plug in the formula
Loan increase=$5000-($25%*$5000)
Loan increase=$5,000-$1,250
Loan increase=3,750
Therefore it can increase its loans by a maximum of $3,750
true or false
1.complex buying behavior is when consumers search for information detals
Answer:
true
Explanation:
Complex buying is when consumers look for details about the product.
Answer:
This is true.
Explanation:
Marketers should have a thorough knowledge of products for customers with complex buying behavior.
Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $70, and each ceiling fan requires 2.50 hours of machine time to manufacture. Additional information is as follows:
Activity Allocation Base Predetermined Overhead Allocation Rate
Materials handling Number of parts $ 0.08
Machining Machine hours 7.20
Assembling Number of parts 0.35
Packaging Number of finished units 2.80
What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)
A) $18.00
B) $70.00
C) $144.00
D) $196.00
Answer:
Machining= $18
Explanation:
Giving the following information:
Each ceiling fan requires 2.50 hours of machine time to manufacture.
Machining Machine hours 7.20
To calculate the cost of machining per ceiling fan, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machining= 2.5*7.2
Machining= $18
Zachary Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials $ 6,400 Unit-level labor 6,400 Unit-level overhead 3,800 Product-level costs* 8,400 Allocated facility-level costs 28,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Zachary for $2.70 each. Required Calculate the total relevant cost. Should Zachary continue to make the containers
Answer:
Zachary Electronics
Zachary should continue to make the containers. It is cheaper to make than to buy from Russo Container Company.
Explanation:
a) Data and Calculations:
Production units = 9,100 containers
Unit-level materials $ 6,400
Unit-level labor 6,400
Unit-level overhead 3,800
Total unit-level costs $16,600
Product-level costs* 8,400
Allocated facility-level costs 28,000
Relevant or avoidable costs:
Unit-level materials $ 6,400
Unit-level labor 6,400
Unit-level overhead 3,800
Total unit-level costs $16,600
Product-level costs* 2,800 ($8,400 * 1/3)
Total relevant costs = $19,400 (to make)
Relevant cost to buy:
Offer from Russo Container company = $2.70 per container
Total cost from outside supplier = $24,500 ($2.70 * 9,100)
[ Shareholders - Employees - Managers - Officers - Board of Directors ]
(a) Who manages the big picture and strategies for corporations, and who manages the day to day affairs of a corporation?
(b) How are each put in their position?
An owner can lease her building for $160,000 per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost is $70,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of:_______.
a. Accounting profits.
b. Economic profits.
Answer:
a. Accounting profits.
Account profit = Revenue - explicit cost
= 160,000 - 55,000
= $105,000
Present value of $105,000 per year for 3 years is:
= 105,000 * Present value interest factor of an Annuity, 3 years, 5%
= 105,000 * 2.7232
= $285,936
b. Economic profit
Economic profit = Revenue - explicit cost - implicit cost
= 160,000 - 55,000 - 70,000
= $35,000
Present value of $35,000 per year for 3 years:
= 35,000 * Present value interest factor of an Annuity, 3 years, 5%
= 35,000 * 2.7232
= $95,312
Note: The profits were treated as annuities as they were constant.
On April 1, a company established a $150 petty cash fund. On April 15, the petty cash fund contains $5 in cash and the following paid petty cash receipts: Petty Cash Receipts Amount Advertising Expense $29.00 Gasoline Expense38.00 Miscellaneous Expense 50.00 Office Supplies 25.00 Prepare the general journal entries to (1) establish the petty cash fund, to (2) reimburse the fund, and to (3) increase its amount to $200 on April 15.
1. General journal entries to establish the petty cash fund
Date Account titles Debit Credit
April 1 Petty cash $150
Cash $150
2. General journal entries to reimburse the fund
Date Account titles Debit Credit
April 15 Advertising Expense $29.00
Gasoline Expense $38.00
Miscellaneous Expense $50.00
Office Supplies $25.00
Cash over and short $3
Cash ($150-$5) $145
3. General journal entries to increase its amount to $200 on April 15.
Date Account title s Debit Credit
April 15 Petty cash ($200-$150) $50
Cash $50
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the financial statements for banana company include the following items: 20x9 20x8 cash $51,500 $50,000 short-term investments 25,000 15,000 net accounts receivable 53,000 50,000 merchandise inventory 163,000 50,000 total assets 532,000 554,000 accounts payable 131,500 124,000 salaries payable 25,000 13,000 long-term note payable 59,000 53,000 compute the current ratio for 20x8. group of answer choices
Answer:
1000,$5000maaf kalo salah
XYZ expects to sell 28,000 pools in 2019. It budgets the beginning inventory of Direct Materials, Work-in-process, and Finished goods to be 26,000; 0; 1,300 units; AND ending inventory to be 26,000; 0; 2,800 units. How many pools need to be produced
Answer:
the no of pools need to be produced is 29,500 units
Explanation:
The computation of the no of pools need to be produced is given below:
= Ending finished goods inventory units + number of units sold - beginning finished goods inventory units
= 2800 + 28000 - 1300
= 29500 units.
Hence, the no of pools need to be produced is 29,500 units
You feel that you will need $2.2 million in your retirement account and when you reach that amount, you plan to retire. You feel you can earn an APR of 10.2 percent compounded monthly and plan to save $305 per month until you reach your goal. How many years will it be until you reach your goal and retire
Answer: 40.7 years
Explanation:
You can use Excel to sold for this using the NPER function.
Rate = 10.2% / 12 months = 0.85%
Payment is $305 per month
Present value is $0
Future value is $2,200,000
Number of periods = 488.1979353
In years this is:
= 488.1979353 / 12
= 40.7 years
Consider the last purchase of two goods by a consumer. A bag of chips costs $1.75 and the marginal utility is 20. A cup of chili costs $2.50. What must the marginal utility of chili be for the consumer to maximize total utility
Answer:
The marginal utility of chili must be 28.57 for the consumer to maximize total utility.
Explanation:
The marginal utility of chili at which the consumer maximizes total utility can be calculated as follows:
Let:
CCHIP = Cost of a bag of chips = $1.75
MUCHIP = Marginal utility of a bag of chips = 20
CCHILI = Cost of a cup of chili = $2.50
MUCHILI = Marginal utility of a cup of Chili = ?
The condition for the utility maximization of the consumer is as follows:
MUCHIP / CCHIP = MUCHILI / CCHILI ……………………………. (1)
Substituting all the relevant values into equation (1) and solve for MUCHILI, we have:
20 / 1.75 = MUCHILI / 2.50
(20 / 1.75) * 2.50 = MUCHILI
MUCHILI = 28.57
Therefore, the marginal utility of chili must be 28.57 for the consumer to maximize total utility.
You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 7.25 percent. You will make a down payment of 20 percent of the purchase price. Calculate your monthly payments on this mortgage.
Answer:
$545.74
Explanation:
The actual mortgage is the purchase price minus the down payment, based on the mortgage amount, the monthly payment can be determined using a financial calculator as shown below:
N=360(number of monthly payments in 30 years=30*12=360)
I/Y=7.25/12(monthly interest rate without the "%" sign)
PV=-80000($100,000-20%*$100,000=$80000)
FV=0(after all required payments , the balance of the mortgage balance would be zero)
CPT
PMT=$545.74
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400lbs. $1.25per lb.
Sugar 80lbs. $0.40per lb.
Milk 120gal. $2.50per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.
Answer:
$0.16
Explanation:
Particulars Quantity Price Amount
Cocoa 400 $1.25 $500
Sugar 80 $0.40 $32
Milk 120 $2.50 $300
Total $832
Standard direct materials cost per bar = Total amount / Number of bar
Standard direct materials cost per bar = $832 / 5,200 bars
Standard direct materials cost per bar = $0.16
Vortex Company operates a retail store with two departments. Information about those departments follows:
Department A Department B
Sales $832,000 $448,000
Cost of goods sold 410,000 291,200
Direct expenses:
Salaries 117,000 86,000
Insurance 13,500 10,900
Utilities 21,000 25,500
Depreciation 18,000 13,500
Maintenance 6,400 5,200
The company also incurred the following indirect costs.
Salaries $29,000
Insurance 6,600
Depreciation 14,800
Office expenses 40,000
Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows.
Department Square footage Number of employees
A 29,400 66
B 12,600 44
Required:
a. Determine the departmental contribution to overhead and the departmental net income for department A and Department B.
b. Should Department B be eliminated?
Answer:
Vortex Company
Department A Department B
a. Contribution margin $246,100 $15,700
Net income $188,270 ($16,870)
b. Department B should not be eliminated unless the indirect costs allocated to it can be eliminated as well.
Explanation:
a) Data and Calculations:
Department A Department B
Sales $832,000 $448,000
Cost of goods sold 410,000 291,200
Gross profit $422,000 $156,800
Direct expenses:
Salaries 117,000 86,000
Insurance 13,500 10,900
Utilities 21,000 25,500
Depreciation 18,000 13,500
Maintenance 6,400 5,200
Total direct expenses $175,900 $141,100
Contribution margin $246,100 $15,700
Total indirect expenses 57,830 32,570
Net income $188,270 ($16,870)
Department Square footage Number of employees
A 29,400 66
B 12,600 44
Total 42,000 110
Indirect Costs: Costs Rates Department A Department B
Salaries $29,000 $0.02266 $18,850 $10,150 ($448/$1,280)
Insurance 6,600 $0.15714 4,620 1,980
Depreciation 14,800 $0.35238 10,360 4,440
Office expenses 40,000 $363.64 24,000 16,000
Total costs $90,400 $57,830 $32,570
Sometimes it is necessary to invest a certain amount of money at a fixed interest rate for a fixed number of year so that a financial goal is met. The inital amount invested in called the present value.
a. True
b. False
Answer: True
Explanation: financial goals is an important step toward becoming financially secure.
The cost of equity is ________. the interest associated with debt the rate of return required by investors to incentivize them to invest in a company the weighted average cost of capital equal to the amount of asset turnover
Answer:
If an = 3n - 2 , find a2
Explanation:
If an = 3n - 2 , find a2If an = 3n - 2 , find a2
On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2020, the book value of the equipment was $30 million and its tax basis was $20 million. At December 31, 2021, the book value of the equipment was $28 million and its tax basis was $12 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $50 million.
Required:
a. Prepare the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.
b. What is Ameenâs 2021 net income?
Answer:
1.31-Dec-21
Dr Income tax expense $12.50
Cr To Income taxes payable $11.00
Cr To Deferred tax liability $1.50
2.$37.50 million
Explanation:
1. Preparation of the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.
Depreciation as per books for 2021 = $30 - $28 Depreciation as per books for 2021= $2 million
Depreciation as per tax for 2021 = $20 - $12
Depreciation as per tax for 2021 = $8 million
Taxable income = $50 + $2 - $8
Taxable income = $44 million
JOURNAL ENTRIES - Ameen Company (In million)
31-Dec-21
Dr Income tax expense $12.50
Cr To Income taxes payable ($44*25%) $11.00
Cr To Deferred tax liability ($6*25%) $1.50
(To record income tax expense)
2. Calculation to determine What is Ameenâs 2021 net income?
Ameen's 2021 net income = $50 - $12.50
Ameen's 2021 net income = $37.50 million
Therefore Ameen's 2021 net income is $37.50 million
The pre-tax accounting income is $44 million and the income tax payable amount is $11 million.
What do you mean by Pre-tax accounting income?Pre-tax revenue is the company's income left over after all operating costs, including interest and depreciation, have been deducted from sales or income, but before deducted income tax.
Pre-tax profits provide insight into the financial performance of a company prior to tax impact.
Calculation of taxable income for 2021:
a)
[tex]\rm\,Taxable \,Income = \\Pre-Tax \; Accounting \; Income + (Excess \;of Book Depreciation \;over \; tax \; depreciation)\\\\\rm\,Taxable \,Income = 50 + (2 - 8)\\\\\rm\,Taxable \,Income = \$44 \;Million\\\\Income\,tax\, Payable = 44 \times 25\%\\\\Income\,tax\, Payable = \$11 Million[/tex]
Journal entry to record Ameena's 2021 income taxes is attached below.
b) Ameena's net income will be :
[tex]\rm\,Ameen's \; 2021 \;net \; income = \$50 - \$12.50\\\Ameen's \; 2021 \;net \; income = $37.50 \rm\,million[/tex]
Hence, The pre-tax accounting income is $44 million and the income tax payable amount is $11 million.
To learn more about pre-tax accounting income, refer:
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What is happening with Unemployment of Indonesia over the past 2 or 3 years?
Answer:
The unemployment rate in Indonesia increased to 6.26 percent in the first quarter 2021 from 4.94 percent in the same quarter a year earlier, amid the economic downturn caused by the coronavirus crisis. The number of unemployed persons surged by 1.82 million to 8.75 million. Meanwhile, the number of employed declined by 2.23 million to 131.06 million, mostly in the transportation and warehouse (-0.30 percent) while that in accommodation and food services reported the largest increase (0.34 percent). Meantime, the labor force participation rate declined to 68.08 percent in the first quarter from 69.21 percent in the prior year.
Explanation:
give 5 star
Nut and Bolt guy Inc, sells nuts, bolts, fasteners and other related equipment. The CFO projects that net FCF for the next three years will be $11,000, $12,500 and $16,000, respectively. After that, the cash flows are expected to increase by 4.5 percent annually. What is the value of the firm if the WACC is 12.2%?
Answer:
$184791
Explanation:
The calculation of the value of the firm is given below:
Year Future Cash Flow PVF at 12.2% PV of Cash Flow
1 11000 0.891 9801
2 12500 0.794 9925
3 16000 0.708 11328
Total 31054
Present Value of Terminal Value
= [16000 × (1 + 0.045) ÷ 0.122 - 0.045] × 0.708
= [16720 ÷ 0.077] × 0.708
= 153737
Now
value of Firm = 31054 + 153737
= $184791
Bangladesh has been the 7 th largest mango exporter in the world and exported 1-billion-dollar worth of vegetables across the world. Within 1000 words, discuss i) How can we internationalize our productions? ii) How can we localize our productions? Discuss some research oriented examples.
Answer:
Private companies added 330,000 jobs in July, according to ADP, far short of the 653,000 estimate
Explanation:
Private companies added 330,000 jobs in July, according to ADP, far short of the 653,000 estimate:The 330,000 new positions is a sharp deceleration from the 680,000 added in June and the lowest total since February. Leisure and hospitality led the gains with 139,000 during a month in which goods-producing industries contributed just 12,000 jobs. #accelerationism
A buyer’s agent represents the buyer, and the seller’s agent represents the broker true or false?
Answer: False
Explanation:
seller is not represent broker
what is GDP of a country
Answer:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Explanation:
GDP is an acronym for Gross Domestic Products (GDP) and it can be defined as a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
On a related note, Gross Domestic Products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are;
I. Consumption (C).
II. Investment (I).
III. Government purchases (G).
IV. Net exports (N).
In conclusion, GDP is a measure of the total amount of finished goods and services produced by a country.
Two leading home appliance companies, Globex Inc. and Pug Tech, are in competition for market share. In their quest for exciting new products, Globex employs an open innovation model, while Pug Tech pursues a closed innovation model. Which of the following statements is most likely true?
a. Globex has a greater chance of capturing market share.
b. Pug Tech has a superior absorptive capacity.
c. Pug Tech will protect its intellectual property with patents and trade secrets.
d. Globex is most concerned with securing first-mover advantages.
Answer: c. Pug Tech will protect its intellectual property with patents and trade secrets.
Explanation:
A closed innovation model means that the company develops the product internally instead of through collaboration with external sources.
Pug Tech will therefore produce new products internally. As a result, they will be able to protect these products from being copied by others through patents and trade secrets because the law will recognize that they have exclusive rights to the new technology seeing as they came up with it.
Positive Messages and the Writing Process
Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and other business partners. Internal messages travel upward to supervisors, downward to employees, and horizontally among workers. Understanding the different types of business messages and following the 3-x-3 writing process will help you write more effective professional messages. Match the message content area with the correct types of messages.
1. Sales pitches, requests for favors
2. Replies, goodwill messages, direct claims
3. Bad news, refusals
a. persuasive
b. positive
c. negative
Consider the scenario about a positive message:
Gilberto is composing an e-mail that explains the terms of a recent business transaction. He has determined the purpose of the message, analyzed his audience, and determined its reactions.
According to the 3-x-3 writing process, what actions make up his next steps?
a. Make a list of points to cover.
b. Plan for feedback.
c. Check for mechanical problems.
d. Collect information.
e. Compose the first draft.
While most business communication is now done electronically, there remain situations in which a business letter is most appropriate.
Messages delivered through business letters are less likely to reach_____than messages delivered through_____. Thus, business letters are more_____.
Answer: See explanation
Explanation:
1a. Sales pitches, requests for favors: In this case, persuasive message should be used to convince the receiver to agree with the sender's viewpoint.
b. Replies, goodwill messages, direct claims: The positive message should be used as the main idea can be communicated directly before any other supporting information are provided.
c. Bad news, refusals: This scenario involves a negative messages and should therefore be written in an indirect manner. It should also be noted that a supporting message us given before the main message us written.
2. According to the 3-x-3 writing process, the actions that make up Gilberto next steps include
a. Make a list of points to cover.
d. Collect information.
e. Compose the first draft.
3. Messages delivered through business letters are less likely to reach (unintended recipients) than messages delivered through (email). Thus, business letters are more (confidential).
Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge of $12. If Joshua repaid the loan in 12 equal monthly payments, what is the APR? (Enter your answer as a percent rounded to 1 decimal place.)
APR %
Answer: 10.81%
Explanation:
The annual percentage rate is the percentage cost of credit on yearly basis.
APR will be calculated
= [(2 x n x I) /( P x ( N + 1)]
where,
n = number of months = 12
I = Finance cost = Interest + service charge = $70 + $12 = $82
P = Borrowed amount = $1,400
N= Loan period = 12
We'll then slot the values into the annual percentage rate (APR) formula and this will be:
= ( 2 x n x I) /( P x ( N + 1))
= ( 2 x 12 x 82) /( 1400 x ( 12 + 1))
= 0.1081
=10.81 %
