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.

User Account

All Pages