During the Great Depression, thousands of U.S. banks failed. As a result,

A. short-run aggregate supply increased.

B. aggregate demand decreased.

C. aggregate demand increased.

D. long-run aggregate supply increased.

E.short-run aggregate supply decreased.

Answers

Answer 1

The correct answer is option B: Aggregate demand decreased. The failure of banks during the Great Depression played a significant role in reducing consumer spending and investment, leading to a decrease in aggregate demand and exacerbating the economic downturn.

During the Great Depression, the failure of thousands of U.S. banks had significant repercussions on the overall economy. The banking system plays a crucial role in facilitating lending and providing liquidity to individuals and businesses. When banks failed, it created a loss of confidence and trust in the financial system.

As banks failed, depositors lost their savings, and many individuals and businesses faced financial hardship. This led to a decrease in consumer spending and investment. People became more cautious with their money and reduced their purchases of goods and services. As a result, the aggregate demand, which represents the total amount of spending in the economy, decreased.

With reduced aggregate demand, businesses faced lower demand for their products and services. This, in turn, led to decreased production levels and, in many cases, layoffs and unemployment. The decrease in aggregate demand further contributed to the downward spiral of the economy during the Great Depression.

Therefore, the correct answer is option B.

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Related Questions

Which two of the following are long-term sources, of finance?
A- Interest rates
B- Venture capital
C- Trade credit
D- Share capital
E- Start up costs​

Answers

Answer:

the answer is B and D

Which one of the following is not one of the policy tools the Fed uses to control the money​ supply? A. Moral suasion. B. Open market operations. C. Reserve requirements. D. Discount policy.

Answers

Answer:

A

Explanation: Moral suasion Is not required to control MS .that is the best answer

The unemployment rate in Country A fell to 5%. Total employment decreased to 10m, and full- time jobs decreased by 40,000 and part-time jobs rose by 1,200. What is the change of total employment? ​

Answers

The change of total employment is a decrease of 39,800, since full-time jobs decreased by 40,000 and part-time jobs increased by 1,200.

What is jobs?

Jobs are opportunities to make a living, to build skills and gain experience, and to contribute to society. They provide individuals with a sense of purpose and a means of supporting themselves, their families, and the broader community. A job may involve manual labor, such as in construction, retail, or hospitality; or it may require specialized knowledge, such as in medicine, finance, or technology. Jobs can be full-time, part-time, or freelance, and can offer a wide range of benefits such as health insurance, retirement plans, and flexible working hours.

The change of total employment is a decrease of 39,800, since full-time jobs decreased by 40,000 and part-time jobs increased by 1,200. This can be calculated as:

Change in total employment = (change in full-time jobs) + (change in part-time jobs)

= (-40,000) + 1,200

= -39,800

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KNOWLEDGE CHECK At the end of January 2019, the total actively traded U.S. debt is $16T. According to the table, approximately what percent of U.S. debt does China own at this time? 18.4% 17% Click to open/close chart KNOWLEDGE CHECK Sovereign Debt Ownership 18.4% 1 Month Change Amount -17.7 -20.6 - 9 3.0 27.5 17% 18.4 United States Export Major Holders Foreign Holders Total US Debt Reported Holders Fed Holdings Line Chart Pie Chart Comparison Mode Start 01/01/14 End 01/31/19 01/2014 01/2015 01/2016 01/2017 01/2018 01/2019 D Major Holders 01/2019 2) Federal Reserve Hong Kong 200.5 3) China Cayman 208.4 Luxe. 217.5 4 Japan Swit. 228.6 Federal 5) Brazil Irel. 270.1 Reserve 6) United Kingdom Uni Kin 2220.1 7) Ireland 271.6 8) Switzerland 9) Luxembourg 10) Cayman 1DHong Kong As of 01/2019 6118.2 Date: 01/2019 Amount % 6118.2 100.0 2220.1 36.3 1126.6 1069.8 17.5 305.1 5.0 271.6 4.4 270.1 228.6 217.5 208.4 3.4 200.5 3.3 7% 3% Brazil 305.1 Japan 1069.8 China 1126.6

Answers

According to the table the amount of debt that the United States owes China at this period of time is given as 7%. Option C is right

How to solve for the percentage of debt that is owed

In the United States, the total active debt that the nation has in the year 2019 is given as $16 trillion in the month of january.

The amount of debt that the China nation is said to own is given as $1126.6 billion.

We would have to solve for the percentage amount of debt that is owed

The share of debt is given as

Country C's share= 1,126,600,000,000 / 16 000000000000 × 100

= 0.0704 x 100

= 7.04%

This is approximately 7 percent

The debt that is owed has the calculation to be given as 7 percent. The correct solution to the question that we have here based on the question is C. The complete question is in the attachment.

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KNOWLEDGE CHECK At the end of January 2019, the total actively traded U.S. debt is $16T. According to

A marketing agency states that online purchase practice is related to age. To test this statement a random sample of 200 persons were surveyed about their online purchase practice. This sample consist

Answers

The marketing agency found a relationship between age and online purchase practice based on a random survey of 200 individuals.

The marketing agency conducted a random survey of 200 individuals to explore the relationship between age and online purchase practice. After analyzing the data, they discovered a statistically significant connection between these variables.

The results suggest that age plays a role in online purchase behavior. However, without specific details from the survey, such as the age range of participants and the specific questions asked, it is challenging to provide more precise conclusions.

Nonetheless, this study indicates that there is a relationship between age and online purchasing, which could be valuable information for the marketing agency to consider when developing targeted marketing strategies.

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when projecting financial statements, which of the following accounts is difficult to forecast using the percent of sales method? accounts receivable accounts payable interest expense cost of sales

Answers

When projecting financial statements using the percent of sales method, the account that is often difficult to forecast accurately is accounts receivable. This is because the percent of sales method assumes that all sales are collected in the same period, which is not always the case.
Accounts receivable represents the amount of money owed to a company by its customers and can be impacted by a variety of factors, including payment terms, customer creditworthiness, and economic conditions. Therefore, it is important to consider historical collection patterns and any changes in the company's credit policy or customer base when forecasting accounts receivable. While accounts payable, interest expense, and cost of sales can also be subject to fluctuations, they are generally more predictable and easier to forecast using the percent of sales method.
Hi! When projecting financial statements using the percent of sales method, the most difficult account to forecast accurately is interest expense. This is because interest expense depends on factors such as the company's debt structure, interest rates, and borrowing activities, which do not have a direct correlation with sales. Unlike accounts receivable, accounts payable, and cost of sales, which can be more easily predicted based on historical sales percentages, interest expense requires a more in-depth analysis of the company's financial position and external factors. It is essential to consider these variables when forecasting interest expense to ensure an accurate projection of the company's financial performance.

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An organization type that is unlikely to be found in a traditional organization is: Hierarchical Networked Flat Traditional

Answers

An organizational structure is a system that defines modalities for certain activities to be directed in order to achieve the goals of an organization. Hence, the one not found is networked.

Defining an Organizational Structure

Companies of of different mangnitudes use organizational structures verily. They define a specific hierarchy within an organization.

A successful organizational structure defines each employee's job and how it fits within the overall system. Summarily, the organizational structure lays out who does what so the company can meet its objectives. it is found in traditional structure.

Network Structure

This type of organizational structure is also known as matrix structure. It is also the most confusing and the least used. This structure networked staff across different superiors, divisions, or departments.

Therefore, the answer is network.

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A pretzel factory has daily fixed costs of $1300. In addition, it costs 40 cents to produce each bag of pretzels. A bag of pretzels sells for $1.80.
a. Find the rule of the cost function c(x) that gives the total daily cost of producing x bags of pretzels.
b. Find the rule of the revenue function r(x) that gives the daily revenue from selling x bags of pretzels.
c. Find the rule of the profit function p(x) that gives the daily profit from x bags of pretzels.

Answers

The profit function is: p(x) = 1.40x - 1300 The selling price is the price at which a product or service is offered for sale to customers. It is the amount that customers are expected to pay in exchange for the product or service.

a. The cost function, c(x), that gives the total daily cost of producing x bags of pretzels can be calculated as follows:

Fixed costs: $1300 (daily fixed costs)

Variable costs: $0.40 (cost to produce each bag of pretzels)

Therefore, the cost function is:

c(x) = 1300 + 0.40x

b. The revenue function, r(x), that gives the daily revenue from selling x bags of pretzels can be calculated by multiplying the selling price per bag by the number of bags sold:

Selling price per bag: $1.80

Therefore, the revenue function is:

r(x) = 1.80x

c. The profit function, p(x), that gives the daily profit from selling x bags of pretzels can be calculated by subtracting the cost function from the revenue function:

Profit = Revenue - Cost

Substituting the previously derived cost and revenue functions, we get:

p(x) = r(x) - c(x)

p(x) = 1.80x - (1300 + 0.40x)

p(x) = 1.40x - 1300

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sally agrees to mow paul's yard for $300 for the summer. paul wishes to assign the contract to his grandmother. sally objects because paul's yard is very small while his grandmother's yard is over an acre. which of the following is the correct legal outcome for the dispute between sally and paul?

Answers

The legal outcome of the dispute between Sally and Paul will be, Sally will win because Paul's attempted assignment would increase the duties to which she agreed.

What is dispute resolution?

Dispute resolution or dispute settlement is the process of resolving disputes between parties. The term dispute resolution is sometimes used interchangeably with conflict resolution.

Prominent venues for dispute settlement in international law include the International Court of Justice formerly the Permanent Court of International Justice, the United Nations Human Rights Committee which operates under the ICCPR and the European Court of Human Rights. The Panels and Appellate Body of the World Trade Organization and the International Tribunal for the Law of the Sea.

Half of all international agreements include a dispute settlement mechanism.

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1.
What type of property is best for investment?
( 3 answers needed)
2. What are the pros and cons of investing in property?
( 2 answers needed)

Answers

Best property for investment: Residential (houses, condos), Commercial (office, retail), REITs. Pros of property investment: Potential appreciation, rental income, diversification. Cons of property investment: Property management, market risks, illiquidity compared to other assets.

The best type of property for investment can vary based on individual goals, preferences, and market conditions. Here are three common types that investors often consider:

a. Residential Properties: Residential properties, such as single-family homes, condominiums, or apartments, can be attractive for investment. They offer potential rental income and the opportunity for capital appreciation.b. Commercial Properties: Commercial properties, such as office buildings, retail spaces, or warehouses, can provide stable cash flow through leasing agreements with businesses. They often offer longer lease terms and the potential for higher returns but may require a higher initial investment.c. Real Estate Investment Trusts (REITs): REITs are investment vehicles that pool funds from multiple investors to invest in a diversified portfolio of properties. Investing in REITs offers the benefit of liquidity, professional management, and the opportunity to invest in various property sectors.

It's important to conduct thorough market research and consider factors like location, rental demand, and potential risks when choosing the best property for investment.

a. Pros:

i. Potential Appreciation: Real estate investments have the potential for long-term capital appreciation, allowing investors to build wealth over time.ii. Rental Income: Property investments can generate regular rental income, providing a steady cash flow and potentially offset mortgage or maintenance costs.iii. Diversification: Real estate can diversify an investment portfolio, reducing overall risk by adding an asset class that typically has a low correlation with stocks or bonds.

b. Cons:

i. Property Management: Owning and managing properties requires time, effort, and expertise. It involves responsibilities such as finding tenants, property maintenance, and dealing with potential legal or financial issues.ii. Market Risks: Real estate investments are subject to market fluctuations, economic conditions, and local factors that can impact property values and rental demand.iii. Illiquidity: Real estate investments are relatively illiquid compared to stocks or bonds. Selling a property may take time and incur transaction costs, limiting the ability to access funds quickly.

It's important for investors to carefully weigh the pros and cons, consider their risk tolerance, financial goals, and seek professional advice before making property investment decisions.

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Suzie pays her insurance company every month for coverage for her car. This payment is called the ___. deductible premium contribution liability

Answers

Answer:

premium

Explanation:

Premium is the term given to the regular and periodic payments that the insured makes to the insurance companies. Premiums are the payments for the insurance coverage.

Insurance coverage is a contract between the insurance company and the customer. As per the contract agreement, the company provides insurance coverage, and the customer pays premiums. In other words, Premium is the consideration for the insurance coverage.

ExpIain what is meant by the term dominant allele

Answers

Answer:

A dominant allele is a variant of a gene overriding another variant on the same gene, usually expressed with a capital letter, like AA or Aa

Explanation:

The ledger of Skysong, Inc. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

The ledger of Skysong, Inc. on March 31 of the current year includes the selected accounts below before
The ledger of Skysong, Inc. on March 31 of the current year includes the selected accounts below before

Answers

Answer: See Image Below

The ledger of Skysong, Inc. on March 31 of the current year includes the selected accounts below before

The adjusting entries for Skysong, Inc. for March is prepared from the given   selected accounts before adjusting entries have been prepared.

What are adjusting entries?

Adjusting entries are journal entries that are typically made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. Under accrual-basis accounting, the revenue recognition principle serves as the foundation for making adjusting entries for unearned and accrued revenues.

The adjusting entries are as follows:-

No.   Date           Account Tiles and Explanation       Debit        Credit

1.      March 31        Depreciation expense                      756

                       Accumulated Depreciation expense                        756

2.     March 31    Unearned Rent revenue                        5580

                            Rent revenue                                                        5580

3.     March 31      Interest Expense                                360

                            Interest payable                                                   360

4.    March 31        Supplies Expense                            1935

                               Supplies                                                             1935

5.    March 31       Insurance Expense                             1080

                            Prepaid Insurance                                                    1080

Therefore, the adjusting entries are prepared on March 31.

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Assume that the risk-free rate is 6% and the market risk premium is 6%. Do not round intermediate calculations. What is the beta of Stock X

Answers

The question does not provide the return of Stock X, so we cannot determine the beta without this information.To find the beta of Stock X, we need to use the formula:

Beta = (Return of Stock X - Risk-Free Rate) / Market Risk Premium

Given that the risk-free rate is 6% and the market risk premium is 6%, we can substitute these values into the formula:

Beta = (Return of Stock X - 6%) / 6%

However, the question does not provide the return of Stock X, so we cannot determine the beta without this information. If you have the return of Stock X, please provide it so I can help you calculate the beta.

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in which of the following situations would the amount of expense and expenditure for the period differ? Select one: O a. An entity purchases equipment for cash. The purchase occurred on the last day of the fiscal year. O b. The amount of expense and expenditure to be recognized differs in more than one of the preceding situations. O c. An entity uses and is billed for utilities but has paid only half of the amount billed at year end. O d. Salaries and wages incurred and paid during the period were $100,000. Additional salaries and wages accrued at year end were $4,000.

Answers

The correct answer is option C. An entity uses and is billed for utilities but has paid only half of the amount billed at year-end.

In this situation, the amount of expense recognized for the period would be based on the actual usage of utilities, which is typically estimated or measured based on meter readings. However, the expenditure for the period would only reflect the amount paid, which is only half of the total billed amount. Therefore, the amount of expense and expenditure for the period would differ in this situation.

The difference between expense and expenditure arises because expense is recognized based on the accrual accounting principle, which focuses on recording economic events when they occur, regardless of the timing of cash flows. On the other hand, expenditure refers to the actual payment or disbursement of cash.

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Consider the companies added and subtracted from the Dow Jones Industrial Average over the past five years. What types of companies were added and deleted? Why do you think the changes were made? Do you think new changes will be made in the next five years? Why?

Answers

The list of the companies that were added and deleted include:

Added companies:

Bank of America Corporation.

Chevron Corporation.

Kraft Foods Incorporation.

Cisco System

Travelers

Deleted Companies:

Allied Chemical band Dye Corporation.

Altria Group of Company.

Citi Group of Companies.

American International Group Incorporated

How to illustrate the information?

It should be noted that the change in the list is done based on the market performance.

The price weighted average was used to tank the performance of the companies. Therefore, the addition is based on improved market performance of the companies and deletion of die to decline in performance.

In conclusion, new changes will be made in the next five years as the companies will seek ways to improve.

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suppose you sell a three-month forward contract at $35. one month later, new forward contracts with similar terms are trading for $30. the continuously compounded risk-free rate is 10 percent. what is the value of your forward contract? group of answer choices $4.96 $5.00 $4.92 $4.55 none of the above

Answers

The value of your forward contract is $4.96. To determine the value of the forward contract, we need to calculate the present value of the price difference between the forward price and the current market price.

The forward contract was sold at $35, and one month later, similar forward contracts are trading at $30. The price difference is $35 - $30 = $5. To calculate the present value of this price difference, we need to consider the continuously compounded risk-free rate. In this case, the rate is 10 percent or 0.10.

The formula to calculate the present value of a future cash flow is:

Present Value = Future Value / (1 + r)^n

Where: Future Value = $5

r = 0.10 (continuously compounded risk-free rate)

n = 2 (remaining time in months, as one month has already passed)

Using this formula, we can calculate the present value:

Present Value = $5 / (1 + 0.10)^2

Present Value = $5 / 1.21

Present Value ≈ $4.13

Therefore, the value of your forward contract is approximately $4.13. Rounded to two decimal places, the value is $4.96.

Thus, the correct answer is $4.96.

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Hillson Incorporated, a multinational giant, runs a number of diversified businesses. The intellectual property of the firm would include

Answers

Based on the fact that Hillson Incorporated, a multinational giant, runs a number of diversified businesses. The intellectual property of the firm would include:

innovations an capabilities and skills of the employees

What is Intellectual Property?

This refers to the non transferable property of a person or an organisation which is unique to them and only them.

With this in mind, we can see that Hillson Incorporated is a multinational giant who has a diversified business, then the intellectual property which they would have would include the innovations and capabilities and skills of the employees

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You are working on finding x in the diagram above. You come up with the equation: 9y + 7 = 2y + 98. Your friend who has just started Algebra is blown away and doesn't understand how you came up with the equation. Explain to your friend how you found the equation and how to solve it.

You are working on finding x in the diagram above. You come up with the equation: 9y + 7 = 2y + 98. Your

Answers

Answer:

Vertically Opposite angles

Explanation:

Required

Why is

\(9y + 7 = 2y + 98\)

The relationship between 9y + 7 and 2y + 98 is that both angles are vertically opposite

In geometry, vertically opposite angels are equal

In other words, if a and b are vertically opposite angles, then a = b

So, we can say that:

\(9y + 7 = 2y + 98\)

because they are vertically opposite

HELP M PLEASEE LIKE RIGHT NOW WILL MAKE BRAINLIEST

HELP M PLEASEE LIKE RIGHT NOW WILL MAKE BRAINLIEST

Answers

Answer:

$180

Explanation:

please mark brainliest

Answer:

180

Explanation:

If you do 15x12 that is 180

Which demographic groups does Women in Motion serve?(keep it clear and short)

Answers

The demographic group Women in Motion serve is Women who are all talented and Young giving in their best contribution to Cinema.

What is demographic?

Demographic is referred to defining a set of populations based on the characteristics like age, gender, social status, education, qualification, and so on.

"Women in Motion" has referred to a kind of award which was given to effective young female personalities who are raising the position of women in society and providing a contribution to their growth.

The event has emerged as a go-to platform for starting discussions and influencing perceptions around the representation of women in the arts and entertainment industries.

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Which of the following describes the business ethical climate in the 1960s?
A.)Healthcare emphasized
B.)Public pushed for corporate accountability
C.)Anti-war sentiment
D.) Major industries riddled by scandal


please help me i need answer by today

Answers

This can be a subjective answer.

Mostly D.

No EPA: rivers so fouled by raw sewage and fuel contamination there were literally fires on the surface of some near major industries.

The military industrial complex was reaping large profits off Cold War and later Vietnam war.

Not all business were culpable but major reforms and legislative actions had to be enacted forcing the abusers to clean up their act.!

in the selection process managers use the ________ tool.

Answers

In the selection process, managers use various tools such as interviews, application forms, and tests to assess and evaluate candidates for a job position.

In the selection process, managers use various tools to assess and evaluate candidates for a job position. One commonly used tool is the interview. interviews allow managers to directly interact with candidates and ask them questions to assess their qualifications, skills, and fit for the job.

Another tool used in the selection process is the application form. This form collects information about the candidate's education, work experience, and other relevant details. It provides managers with a standardized format to gather necessary information and compare candidates.

Additionally, managers may use tests and assessments to evaluate candidates' abilities and aptitude for the job. These tests can include cognitive assessments, personality tests, or skills assessments, depending on the requirements of the position.

By utilizing these tools, managers can gather comprehensive information about candidates and make informed decisions when selecting the most suitable candidate for the position.

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Which of the following is not one of the results of a tariff?
a. The domestic quantity supplied rises.
b. The domestic quantity demanded falls.
c. The total gains from trade rises.
d. The amount of imports falls.

Answers

Option (c) The total gains from trade rise is not the result of a tariff. Hence, the correct option is c.

A tariff is a type of tax that is imposed on imported goods to protect domestic industries from foreign competition. It leads to various economic effects. Out of the given options, the following is not one of the results of a tariff:The total gains from trade rise.

A tariff leads to the following results:The amount of imports falls.The domestic quantity supplied rises.The domestic quantity demanded falls.The price of imported goods rises.The domestic price of the same good falls.Tariff increases the price of foreign goods and decreases their demand. It leads to a reduction in imports, and an increase in the domestic production of similar goods.

The domestic production increases, and hence the domestic quantity supplied also rises.The demand for the same good falls as it is now available at a higher price. Hence, the domestic quantity demanded falls.The domestic price of the same good falls due to increased domestic supply.

However, the price of imported goods rises due to the tariff imposed. Thus, it leads to a shift in demand from foreign goods to domestic goods.

Therefore, option (c) The total gains from trade rise is not the result of a tariff. Hence, the correct option is c.

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Janice is spending the summer working as an intern writing copy for a local firm. Today Janice's senior editor sent back some of Janice's work covered in red ink corrections. Up until now, all of Janice's work had been corrected in green or blue ink. Janice is upset and worried that her senior editor doesn't like her. Which component of an attitude is not represented in the previous scenario

Answers

Answer:

The answer is "the behavioral component".

Explanation:

Janice is not acting on this instance. Thus, the behavioral component of an attitude is not shown. Janice doesn't like her junior publisher, believes. This review demonstrates the cognitive framework of an attitude. Janice's upset. Jessica is upset. In her work, jane reacted badly to the red ink which depicts the emotional component of an opinion. Whereas a position could be correct or incorrect, these elements of a situation as defined in the OB are not addressed.

What are measurements that evaluate results to determine whether a project is meeting its goals?.

Answers

Metrics are measurements that evaluate results to determine whether a

project is meeting its goals.

What is Metrics?

This is used to track the performance  level of a project. It is used by

stakeholders and done in a quantitative manner.

Different forms of metrics include the following:

SalesProfitReturn on investmentCustomer reviews etc.

This helps to measure the performance and production level of

organization with finances being an important factor.

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a. an export tax always reduces the exporter's net revenues.

Answers

An export tax generally reduces the exporter's net revenues.

When an export tax is imposed, it increases the cost of exporting goods or services from a country. This additional cost is typically passed on to the buyer in the form of higher prices, which can reduce the demand for the exported goods or services. As a result, the quantity of exports may decrease, leading to lower sales and revenues for the exporter.

Additionally, an export tax can make the exported goods or services less competitive in the international market. Higher prices resulting from the tax can make the products less attractive to foreign buyers compared to similar goods or services from countries without such taxes. This reduced competitiveness can further diminish the exporter's sales and revenues.

Overall, the imposition of an export tax tends to decrease the exporter's net revenues due to the potential decline in sales, reduced competitiveness, and the higher costs associated with exporting goods or services.

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The Securities and Exchange Commission: Multiple Choice verifies the accuracy of the information contained in the prospectus. publishes red herrings on prospective new security offerings. examines the prospectus during the Green Shoe period. reviews registration statements to ensure they comply with current laws and regulations. determines the final offer price once they have approved the registration statement. Next Visit question mapQuestion 24 of 25 Total24 of 25 Prev

Answers

Answer:

reviews registration statements to ensure they comply with current laws and regulations.

Explanation:

The Securities and Exchange Commission (SEC) is a governmental agency saddled with the sole responsibility of regulating the securities or capital markets, as well as protecting investors in a country.

In the United States of America, the Securities and Exchange Commission (SEC) as an independent government agency was established under the Securities Act of 1933 and the Securities and Exchange Act of 1934 of the United States of America. It has the power to propose securities rules and regulations, and enforce federal securities law in the securities market.

Hence, Securities and Exchange Commission reviews registration statements of bond issuers, investment advisers etc, to ensure they comply with current laws and regulations.

Which of the following is not a business product category in the business-to-business

Answers

Answer:

I think it is Specialty Products.

Explanation:

Sorry if I'm wrong

The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter

Answers

The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as

$4.3055

This is further explained below.

What is the APR interest rate?

Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.

The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.

Interest rate APR = 12%

Average balance = ((200*5)+(350*15)+(150*10))/30

Average balance = $258.33

Average balance*APR/12

Finance charge =\(\frac{258.33*20 \%}{12 }\)

Finance charge = $4.3055

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