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Rachel Johnson Went to the ATM to Withdraw $200 Cash

question 44

Essay

Rachel Johnson went to the ATM to withdraw $200 cash with her debit card.She inadvertently pulled out her credit card instead,not realizing the expenses for cash advances.If her credit card company charges a cash advance fee of 4% and interest at 22% APR,what are the total fees she will pay for her mistake?


Definitions:

Future Value Factor

A multiplier used to calculate the estimated future value of a current investment or cash flow at a specified rate of return.

Cash Flows

The entire amount of funds transferred into and out of an entity, impacting its liquidity.

Future Value Factor

A multiplier used to calculate the future value of an investment based on its present value and interest rate over time.

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