What apr rate should you charge your customers

Assignment Help Finance Basics
Reference no: EM13255751

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 5%, 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: EM13255751

Questions Cloud

How much mass could this balloon carry : The density of air at standard temperature and pressure (STP) is 1.20 kg/m^3 how much mass could this balloon carry
Explain regarding the human genome project (hgp) : Regarding the Human Genome Project (HGP) ~ Do you expect this sort of work to yield additional medical therapies as time goes on
Determine the approximate current value of apex''s bond : Please determine the approximate current value of Apex's bond. The annual coupon payment is $100, the required return is 12%, the par value is $1,000 and the time to maturity is 5 years.
How to calculate the atom economy : Calculate the % atom economy for the following two methods for converting benzene, C6H6, to aniline, C6H5NH2.
What apr rate should you charge your customers : What APR rate should you charge your customers? Round your answer to two decimal places.
Define the incomplete removal of a recrystallization solvent : What effect would the incomplete drying of a sample (for example, the incomplete removal of a recrystallization solvent) have on the melting point
Summarize and critique john stuart mills utilitarianism : Summarize and critique John Stuart Mill's "Utilitarianism" in 2-3 pages
What is the possible range for a correlation coefficient : For purposes of diversification, what type of correlation coefficient among assets returns is preferred by investors? Provide a brief explanation.
What temperature does the vapor pressure compressed : A known vapor pressure value for ethanol is 221.3 mmhg. what temperature does this vapor pressure compressed to when compared to ethanol's boiling point.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the net present value

In your planning phase of a new system, you are require to do a feseality study , with the given information calculate the net present value and the overall return of investment.

  Operating cash flow-contribution margin-tvm

You borrow $5,600 to purchase a car. The ters of loan call for monthly payments for 4 years at the 5.9% rate of interest. What is the amount of each payment?

  Calculate the net cash flow

Company X is planning to estimate the 1st year net cash flow for a proposed project. The financial staff has collected the following information on the project:

  Annual coupon interest rate

Outstanding bonds have a $1,000 par value and will mature in 5 years, yield to maturity is 9%-Find out the bonds's annual interest rate?

  Star wall street trader is negotiating his 1st contract

A star Wall Street trader is negotiating his 1st contract. His opportunity cost is= 10%. He has been presented the 3 year contracts which are given below.

  Mergers and team building

You've just been part of merger. You've each been chosen to head up your department and merge the two groups into a self-directed work team.

  Determining the proper cash flow amount

Determine the proper cash flow amount to use as initial investment in fixed assets when estimating this project? Describe why?

  What is the best estimate of tapleys simple interest rate

Assuming that interest rates in the general economy are expected to re main at their current level, what is the best estimate of Tapley's simple interest rate onnew bonds?

  Computation of the incremental free cash flow

Computation of the incremental free cash flow for the first year of the new project and Use of the equipment will require an increase in your company's net working capital

  What is the current yield on a bond

What is the current yield on a bond that has the following characteristics: (a) Price: $890.00, (b) Coupon: $75.00, and (c) Number of years until maturity: 10?

  Service sector using pricing decision

Service sector using pricing decision and compute endowment revenue on an accrual basis for the coming year

  Evaluate the degree operating leverage

Evaluate the Degree Operating Leverage and the Degree Financial Leverage for the last two years. Did your company increased or decreased the overall risk?

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