Nominal interest rate and extending credit

Assignment Help Financial Management

Reference no: EM131490211

Nominal interest rate and extending credit As a jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly. To carry receivables, you must borrow funds from your bank at a nominal 8%, monthly compounding. To offset your overhead, you want to charge your customers an EAR (or EFF%) that is 2% more than the bank is charging you. What APR rate should you charge your customers? Round your answer to two decimal places.

Reference no: EM131490211

Questions Cloud

What drugs do you believe on the most commonly used today : What drugs do you believe on the most commonly used today? Why are some more widely used then others

Sparrow corporation is a calendar year taxpayer : Sparrow Corporation is a calendar year taxpayer. Capital gains in the amount of, Taxable dividend income in the amount of,

Define the federal budget : In each of the following circumstances, decide whether the impact of goverment on the economy increases or decreases and why.

Is such tax consistent with a mechanistic view of government : Obesity is perceived to be a national health problem in the United States. One suggestion to deal with this problem is a "fat tax." The idea is to levy a tax.

Nominal interest rate and extending credit : As jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly. What APR rate should you charge your customers?

How you would expect libertatian with an organic conception : Explain how you would expect a libertatian, a social democrat, and someone with an organic con-ception of the state to mars to the following laws.

How much has the investor lost in yen terms-in dollar terms : How much has the investor lost in yen terms? In dollar terms?

Is statements are consistent- an organic or mechanistic view : Indicate whether each of the following statements is consistent with an organic or mechanistic view of government.

Better representation of the costs incurred to produce job : Which approach to assigning overhead gives a better representation of the costs incurred to produce Job 6.15? Explain.

User Account

All Pages