Calculate interest on the daily balance

Assignment Help Financial Management
Reference no: EM132049985

Your VISA bill for September has one item: a 72 inch Plasma television costing $3, 984 which was purchased on Sept 15th.

It is now October 15th at midnight. You have missed the payment deadline and now owe interest.

VISA calculates interest on the daily balance (with daily compounding) from the date of purchase.

Assume that the purchase occurred at midnight, so the Sept 15th purchase accrues its first day of interest at the end of Sept 16th. The annual rate charged by VISA is 18.2%.

If you pay off the debt (including interest) right now (at midnight on October 15th), then how much do you have to pay? (Assume a 365-day year.)

If you pay off the debt (including interest) right now (at midnight on October 15th), then how much do you have to pay? $ (Round to the nearest cent.)

Reference no: EM132049985

Questions Cloud

Characteristics that identifies it as technical writing : Describe an example of technical writing that you have written or encountered in the past week at work, home or school
Elitist elements gain control of government : Part of the idea of totalitarianism is that certain elitist elements gain control of government and impose their view on others.
Abolition movement in the united states : 1) In your opinion, which individual had the greatest impact on the Abolition Movement in the United States?
Jackson administration indian removal policy : In Florida, the Jackson administration's Indian removal policy led to the Second Seminole War.
Calculate interest on the daily balance : Your VISA bill for September has one item: a 72 inch Plasma television costing $3, 984 which was purchased on Sept 15th.
How much interest will you pay this arrangement : The interest rate is .581 percent per month. In addition, 3 percent of the amount that you borrow must be deposited in a noninterest-bearing account.
Was communism in many ways no different than nazism : Was Communism in many ways no different than Nazism? Discuss.
Calculate vintages return on equity : Vintage, Inc. has a total asset turnover of 0.74 and a net profit margin of 6.08 percent. The total assets to equity ratio for the firm is 1.5.
Control of resources in its sphere of the world : How did Social Darwinism play into Japan's quest for control of resources in its sphere of the world?

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is lowest possible profit from combined investment

An investor purchases a stock for $65 and writes a call option on the same stock with an exercise price of $70 for a premium of $4 per share. The call option expires in one year. What is the maximum profit the investor can earn on the combined "cover..

  Find the face value of the bond

An investor owns a $3000 par-value 12% bond with semiannual coupons. The bond will mature at par at the end of fourteen years. The investor decides that a ten-year bond would be preferable. Current yield rates are 6% convertible semiannually. The inv..

  What is the value of annuity six years and four years

What is the value of the annuity today? what is the value of this annuity six years and four years from now?

  The stocks required return-dividend is expected to grow

A stock is currently priced at $32.90. Its dividend is expected to grow at a rate of 5% per year indefinitely. The stock's required return is 10%. The stocks's predicted price 3 years from now should be?

  What is the value of the common stock

what is the value of the common stock if the investors require a rate of return of 19 ?percent?

  What will natasha bank balance be at the end of year eight

Natasha plans to deposit $4,000 per year in her account for each of the next 4 years. What will Natasha's bank balance be at the end of year 8?

  Use the replicating-portfolio method to value this call

Over the coming year Ragwort’s stock price will halve to $50 from its current level of $100 or it will rise to $200. The one-year interest rate is 10%. What is the delta of a one-year call option on Ragwort stock with an exercise price of $100? Use t..

  Comment of the capital structure of the company

Comment of the Capital Structure of the Company? Assume that the Company approached you for borrowing more money.

  Prepare schedule of cash receipts

Prepare a schedule of cash receipts for J. Lo’s Clothiers covering the fourth quarter (October through December).

  Does person have moral responsibility to pay her debts

Is it unethical to avoid paying one’s debts by going into bankruptcy? Does a person have a moral responsibility to pay his or her debts?

  Determine their standard deduction and exeption

The Lees, a family of two adults and two dependent children under age 16, had a gross annual income of 68,000 for 2014. Determine their standard deduction, exeption, and child tax credit amounts as well as thier marginal and average tax rates, assumi..

  What is expected return on the portfolio

If the expected returns on these stocks are 10 percent and 13 percent, respectively, what is the expected return on the portfolio?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd