A retailer offers a revolving credit account to its customers; interest is charged at 18 percent per year
If a customer buys $400 in merchandise in November and carries the total balance over for one month, how much must the customer remit to pay the account in full?
a. $400
b. $403
c. $406
d. $409
Ans: a. $400
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Which of the following is not a factor under the Free Cash Flow to Equity (FCFE) Model?
a. Depreciation expense b. Capital expenditure c. Change in working capital d. Principal debt repayment e. Earnings multiplier
You deposited $1,000 in a savings account that pays 8 percent interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to the Rocky Mountains to become a ski instructor rather than continue in school, so you close out your account. How much money will you receive?
a. $1,171 b. $1,126 c. $1,082 d. $1,163 e. $1,008