You Have Been Offered a Credit Card with an Interest

question 69

Multiple Choice

You have been offered a credit card with an interest rate of 1.5% per month.This is equivalent to and effective annual rate (EAR) of [blank].

• A)12.17%
• B)18.00%
• C)24.00%
• D)19.56%

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Definitions:

Demand Pattern

The trend or tendency of buyers purchasing certain quantities of a product at various times.

Overstock

Occurs when a company holds more inventory than it can sell, potentially leading to high holding costs and reduced profitability.

Product Availability

The extent to which a product can readily be found in the market and is accessible to customers.

Tailored Postponement

A supply chain strategy where the manufacturing process is initiated but the final configuration of the product is delayed until the last possible moment to better meet customer demand.