1.) You have a credit card with an APR of 24%. You begin with a balance of $620. In the first month you make a payment of $450 and make new charges of $220. In the second month you make a paymen of $320 and make new charges of $90. Complete the following table. (Round VOur anSwers to tho nonrogt

Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge…

A: A credit card is a card that is issued by the bank to the users to enable that holder to pay a…

Q: The previous statement for your credit card had a balance of $770. You make a payment of $360 but…

A: Given information: Previous balance is $770 Payment of $360 Additional purchase of $220 APR of 24%

Q: You have a balance of $400 on your credit card and make no more charges. Assume that the card…

A: Balance amount =$400 APR =18%  Monthly rate = 0.18/12 =1.50% Time =6 months or 6 periods So, monthly…

Q: Suppose you deposited $1,000 in a credit union account that pays 7% with dailycompounding and a…

A: Excel Spreadsheet:

Q: Suppose your business has secured a line of credit and receives the accompanying statement of…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Prepare the following calculations. principle on a note is $ 4,000, interest rate is 5%, time is 2…

A: 1. Interest = Principle x Interest rate x Time in Years = $4000 x 5% x 2 = $400 2. Interest =…

Q: Last month, Kaitlin's average daily balance on her credit card was $1,253.38. The annual interest…

A: Given: Average daily balance on credit card "B"= $1253.38 Annual interest rate "r"=15.27% Number of…

Q: Vou have a credit card with an APR. of 16%. Vou begin with a balance of $750. In the first month you…

A: For credit card, charges are purchases on credit card and payments are payment on the balance of…

Q: The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given…

A: Interest rate = 10.5% Initial balance = $150  Number of days = 1-3 is 3 days Number of days = 4-20…

Q: Assume that you have a balance of $2800 on your MasterCard and that you make no more charges. Assume…

A: Given information: Loan balance is $2,800 APR is 12% Minimum payment is 6% of balance

Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1000, in response to which…

A: Finance charge Any fees that represent the credit cost, or borrowing cost. It is an interest accrued…

Q: How many payments will you have made when your account balance reaches $15,000?

A: Future Value of Annuity: It is the worth of the recurring cash flows or payments at a certain…

Q: Suppose your business has secured a line of credit and receives the accompanying statement of…

A: Limit on your line of credit - $1,000.00 Interest rate on positive balances - 1.6% p. a Interest…

Q: Determine the finance charge, new balance, and minimum payment required for each of the next two…

A: Finance charges refers to those costs or extra amount which is paid by the borrower to the lender on…

Q: Complete the following take table. Round your answer to the nearest cent. Table 1 month- Previous…

A: Month 1: Outstanding balance in beginning = 610$ APR = 24%  Finance charge = 610$ * 24% * 1/12 =…

Q: Calculate the monthly finance charge for the credit card transaction. It takes 10 days for a payment…

A: We will calculate the interest on the basis of simple interest.

Q: Assume that you start with a balance of $4000 on your Visa credit card. During the first month, you…

A: Finance charges are levied by credit card companies if credit card holder fails to make payment on…

Q: Assume that you have a balance of $3400 on your credit card and that you make no more charges.…

A: Credit Card is short-term credit facility provided to retail customers by financing entities that…

Q: You have a credit card with an APR of 22.8%. You begin with a balance of $1500, in response to which…

A: The interest on the credit card is charged monthly. The amount of payment reduces the outstanding…

Q: ou have a credit card balance of $2,000 and are able to make payments of $50 per month.  Assume the…

A: we need to use NPER function in excel to calculate number of periods/months. Formula is…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Information Provided: Balance = $4000 Rate = 16% Payment = $2500 Days it take for payment = 10 Days

Q: Assume that you start with a balance of $3600 on your credit card. During the first month, you…

A: Given Starting balance is $3600 First month charge is $400 Second month charge is $550

Q: Assume that you have a balance of $4500 on your Discover credit card and that you make no more…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: Suppose your business has secured a line of credit and receives the accompanying statement of…

A: Note: As per our guidelines, only the first three subparts have been answered      Interest…

Q: You have a credit card with an APR of 20%. You begin with a balance of $600 in response to which you…

A: Given: APR = 20% Beginning balance = 600

Q: nth. Round all values to the nearest cent. A. What is the finance charge for this first month? B.…

A: finance fee is the interest  pay on a loan you owe,If you carry a debt from one payment month to…

Q: Assume you have a credit card that has a 24% APR and you have an average daily balance of $1,500.00.…

A: Credit card companies lend a certain amount to the borrower and charge interest over that amount…

Q: Your Office Supply has a $42,500 line of credit that charges an annual percentage rate of prime rate…

A: Calculate the rate of interest per month:

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: The term finance charge refers to the cost of borrowed money or the charges that are incurred on the…

Q: Consider a credit card with an APR of 21.99% and a minimum payment each month of 6% of the new…

A: Finance Charge = starting balance *21.99%/12

Q: You’re prepared to make monthly payments of $265, beginning at the end of this month, into an…

A: Monthly payment (P) = $ 265 Future value (FV) = $ 68000 Annual interest rate  =9% Monthly interest…

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Average daily balance is the average of the monthly expenses   Date No of days Balance…

Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge…

A: Given, Starting balance is $3900. First month charge is $400. Second month charge is $650 Rate of…

Q: Your office supply has a line of credit that charges an annual percentage rate of prime rate plus…

A: Given information: Balance of office supply line of credit on different dates of March. Annual…

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Credit card is a facility provided by the credit card companies to its customers in which customer…

Q: An account starts with a value of $5,500. It earns 7.4%, compounded monthly. $300 is added to the…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Suppose you deposit D dollars at the beginning of each month into an account that pays a monthly…

A: Given: B = $2,600 D = $160 r = 0.005 B = D(1+r)[ (1+r)t -1]/r.

Q: Your credit card has a limit of $3,000. You have charged goods totaling that amount. Your yearly APR…

A: Finance charges of 1 month = Credit limit availed * APR % * 1 month / 12 months

Q: Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous…

A: Cash and cash equivalents mean the cash or the assets which can be converted into cash within a very…

Q: A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement…

A: Minimum monthly payment is the least amount of money paid by the credit card holder every month .…

Q: The balance on a credit card, that charges a 12% APR interest rate, over a 1 month period is given…

A: A credit card refers to a facility provided by banks to its customers that customers can make the…

Q: You have a credit card that has a balance of $11,020 at an APR of 20.49 %.You plan to pay $400 each…

A: The number of months required to pay off the balance can be computed with the help of NPER function…

Q: Assume that you have a balance of $5500 on your Discover credit card and that you make no more…

A: The annual percentage rate that is APR refers to the interest rate on the credit card. The interest…

Q: Assume that you have a balance of $3000 on your Discover credit card and that you make no more…

A: Formula:

Q: Jerry Allison starts the month with a balance on his credit card of $1,180. On the 10" day of the…

A: In Previous Balance Method, Unpaid Balance at start of billing cycle is used to compute finance…

Q: Assume that you have a balance of $3400 on your credit card and that you make no more charges.…

A: Credit card is a source to borrow the money from banks or other institutions and this borrowed…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.