Amanda financed a new living room set at the furniture store for $2,700. The store offered no interest for 6 months or 20 percent annually if the balance was not paid in full prior to the end of the interest free period. How much interest will she need to pay if she lets the account go for 6 months and 1 day before paying the bill?

answer: i believe it’s 245.04

step-by-step explanation:

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%

1. perpendicular

2. parallel

3. perpendicular