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# APR calculation

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Eduardo has a balance of \$3,265.96 on his credit card with an APR of 12.6%. His credit card requires a minimum monthly payment of 2% of the balance. If he transfers his balance to a credit card with an APR of 8.5% how of his first payment would be interest and how much would be applied to the principal?

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#### Solution Preview

Eduardo

Balance: 3265.96 APR 12.6%

Monthly periodic interest rate: 2%
Multiply the balance by the monthly interest rate to get monthly interest payment

\$3265.96 X 0.02 = \$65.32

Total interest paid in one year on top of ...

#### Solution Summary

The APR stands for annual percentage return on a credit card. It is simply analogous to the simple interest on a loan. Being able to calculate the amount of interest can help us budget our loans and credit cards. These are the steps on how to do this.

\$2.19

## Soft Touch: Calculate CGS, ending Inventory under FIFO and moving average

Cost Sales
April 1 Beginning inventory 75 units \$48,750
3 Purchase 50 units 31,250
5 Sale 30 units \$35,100
11 Purchase 25 units 17,875
15 Sale 55 units 68,750
22 Sale 40 units 51,400
28 Purchase 50 units 37,000
Please explain the calculations.

Soft Touch uses the perpetual inventory system.

Calculate the cost of goods sold and ending inventory under each of the following costing assumptions

FIFO Moving average
Cost of goods sold \$ _____ \$_____________
Ending inventory \$ _____ \$_____________

Determine the gross margin under each of the costing assumptions

FIFO Moving average
Gross margin \$ _____ \$_____________

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