A store will give you a 4.25% discount on the cost of your purchase if you...

A store will give you a 4.25% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Effective Annual Rate =

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jeff jeffy answered 2 years ago

A store will give you a 4.75% discount on the cost of your purchase if you...

A store will give you a 4.75% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

can you please give example and explanation about opportunities cost, discount cash flow, discount rates ,prescent...

can you please give example and explanation about opportunities cost, discount cash flow, discount rates ,prescent value, free cash flow, NPV, IRR , stock valuation in finance management.

When do you recognize a purchase discount? If i am calculating cost of inventory using the...

When do you recognize a purchase discount? If i am calculating cost of inventory using the weighted avg method (perpetual) and: I purchase invenotry on July 1st. On july 8th i pay the accounts payable and receive a 2% discount. Do i recognize this 2% in my cost of inventory on July 1st or July 8th. The date i pick will affect my ending inventory and im not sure which one to use.

A supplier offers you the following discount table for the purchase of your main product, whose...

A supplier offers you the following discount table for the purchase of your main product, whose annual demand you have estimated at 5,000 units. The cost of issuing a purchase order is $ 49, and it has also been estimated that the annual cost of storing a unit in inventory is 20% of the cost of purchasing the product. What is the order quantity that minimizes the total cost of inventory? Q ( Cantidad) Discount % Costo Unitario 0 -...

The annualized discount rate on a particular money market instrument, is 4.25%. The face value is...

The annualized discount rate on a particular money market instrument, is 4.25%. The face value is $100,000, and it matures in 45 days. What is its price? What would be the price if it had 62 days to maturity?

3. You have the budget to purchase 100 sweatshirts for your store. All the sweatshirts will...

3. You have the budget to purchase 100 sweatshirts for your store. All the sweatshirts will be purchased from Hanes for $12 each. The distribution of sizes will be as follows: Small 12% Medium 28% Large 32% X-Large 20% XX-Large 8% Four colors will be represented in the assortment as follows: Red 25% Blue 25% White 25% Black 25% One third of the assortment will be hooded, and the remainder will be nonhooded. Develop an assortment plan based on this...

Calculate the interest of a $1,000 bond that pays 4.25% annually with a purchase date of...

Calculate the interest of a $1,000 bond that pays 4.25% annually with a purchase date of January 1, 2012 and a maturity date of December 31, 2017.

King’s Department Store is contemplating the purchase of a new machine at a cost of $35,370....

King’s Department Store is contemplating the purchase of a new machine at a cost of $35,370. The machine will provide $5,200 per year in cash flow for nine years. King’s has a cost of capital of 11 percent. Use Appendix D for an approximate answer but calculate your final answer using the financial calculator method. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Gerry plans to purchase a $325,000 home with a 30 year mortgage and a 4.25% interest...

Gerry plans to purchase a $325,000 home with a 30 year mortgage and a 4.25% interest rate. Calculate his monthly payment to the nearest cent.

You work at Gigundo-Mart Discount Store as a cashier. Last Sunday night after closing, the store...

You work at Gigundo-Mart Discount Store as a cashier. Last Sunday night after closing, the store manager called a mandatory, unpaid meeting for all employees, including those who did not work that day. The manager’s thirty-minute speech covered Gigundo-Mart’s financial situation and how the company needed to downsize, freeze all open positions, and cut all employee salaries by 10%. As he spoke you noticed many side conversations and some of your co-workers crossing their arms,...

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