1. Jake has a credit card with an outstanding balance of $18,504. The credit card company charges an APR of 23.2% compounded monthly. The minimum payment is $536 per month. a) How many months will it take Jake to pay off the outstanding balance? b) What monthly payment is necessary to repay the debt in 3 years?

1. Jake has a credit card with an outstanding balance of $18,504. The credit card company charges an APR of 23.2% compounded monthly. The minimum payment is $536 per month. a) How many months will it take Jake to pay off the outstanding balance? b) What monthly payment is necessary to repay the debt in 3 years?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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6. You borrow $1000 to pay for a repair on your car to be paid back in 12 months. Your credit isn't in the best condition and you borrow at an APR of 18% compounded monthly. Complete the table below describing the first 4 payments. First, the monthly payment then complete the table below. a. Calculate the monthly payment b. Complete the four - month amortization table below. c. How much interest will you pay in total by the end of the loan? a. calculate tne nY pay b. Complete the four-month amortization table below (2 pts for table) Applied to Balance owed Payment Payment Applied to Interest Outstanding Balance nurber :2
Vilma wants to have P350,000 at the end of 5 years by making a regular deposit at the end of each quarter in an account that pays 9.6% interest, compounded every 3 months. a. Find the amount of quarterly deposit. | b. Find the accumulated amount in the account after the 15th deposit. P
Today, you signed loan papers agreeing to borrow $4,954.85 at 12% APR compounded monthly. The loan payment is $142.33 a month. How many loan payments must you make before the loan is paid in full? A. 29.89B. 30.02C. 38.88D. 40.00E. 43.00
Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each month, $130 is electronically debited from his checking account and placed into a savings account earning 6% interest compounded monthly. What is the value (in $) of Jorge's account after 17 months? (Round your answer to the nearest cent.)
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $590 per month. You will charge .99 percent per month interest on the overdue balance. If the current balance is $14,810, how long will it take for the account to be paid off? Number of months:
Anita opens a savings account. At the start of each month she deposits SX into the savings account. At the end of each month, after interest is added into the savings account, the bank withdraws $2500 from the savings account as a loan repayment. Let M be the amount in the savings account after the n" withdrawal. The savings account pays interest of 4.2% per annum compounded monthly. (i) Show that after the second withdrawal the amount in the savings account is given by M = X(1.0035 + 1.0035)- 2500(1.0035 + 1). %3D (ii) Find the value of X so that the amount in the savings account is $80 000 after the last withdrawal of the fourth year.
You currently have a balance of $5,000 and you pay an interest rate of 17% per year on the card. Your minimum payment is 3% of the statement balance. If you pay the minimum balance for 20 months, what will be your new balance? Answer: x (3,602.40)
Assume you have a balance of $1000 on a credit card with an APR of 24%, or 2% per month. You start making monthly payments of $200, but at the same time you charge an additional $90 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. The following table shows how you can calculate your monthly balance. Complete and extend t the debt is paid off. How long does it take to pay off the credit card debt?
Jason Stein from Topeka, Kansas, borrows $1,500 (including interest) for four years (48 months) at an interest rate of 7% per year. The loan uses the discount method for determining the amount of interest. How much of the loan amount ($1,500) consists of interest? How much of the loan is actually given directly to Jason? What is the monthly payment (rounded to the nearest penny), assuming 48 monthly payments?
Assume Dave borrowed $360 on his personal line of credit. Interest is charged at a rate of 17 percent, but calculated on a daily basis. Dave is required to pay a minimum of 5 percent of the remaining loan balance every month. What would be Dave's first monthly loan payment? Assume a 30-day month and a 365-day year. (Round your answer to 2 decimal places. Omit the "S" sign in your response.) Monthly loan payment
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