4. Consider a credit card with a balance of $7000. You wish to pay off the credit card,which has an APR of 17.99%, within 1 year. Calculate the following. Round your answerto the nearest cent, if necessary.a. Find thenumber of months you will need to pay the credit card if you pay $585per month.b. Will you meet your goal and have the credit card paid in one year?

a.Calculate the maturity period to repay the debt as follows:MS-Excel --> Formulas -->…

Answered: 4. Consider a credit card with a…

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

See similar textbooks

Similar questions

If a person has ATM fees each month of $22 for 8 years, what would be the total cost of those banking lees? Totalcost
You want to buy a car. The loan amount will be $28,000.00. A bank is offering a 5% interest rate for 36 months (3 years). What will your monthly payments be? My monthly payment will be $_______
You want to be able to withdraw $5000 from an account at the end of each year for the next 12 years. How much money should you invest now into an account earning 5.5% interest per year, compounded annually, in order to fund the desired withdrawals? Assume the account is empty after the last withdrawal is made. Give the answer to 2 decimal places, and do not use the $ sign in the answer box. The amount to invest now is Blank 1. Calculate the answer by read surrounding text. dollars.
Please provide the steps to solving this problem using a financial calculator: You just opened a brokerage account, depositing $3,500. You expect the account to earn an interest rate of 9.652%. You also plan on depositing $4,500 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?
Suppose you have been saving for the last 4 years to buy a new mountain bike. This year you will finally get to buy it. If you have been depositing $193 per month in a bank account which gives 5% APR. How much do you have now in your bank account? (Round the answer two decimal point)
You would like to contribute to a savings account over the next three years in order to accumulate enough money to take a trip to Europe. Assume an interest rate of 20%, compounded quarterly. How much will accumulate in three years by depositing $560 at the beginning of each of the next 12 quarters? Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (EV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Table, Excel, or calculator function Payment: Future Value: n= FVAD of $1 $ 560 12 5.0%
COMPARING INTEREST COST. You currently have a credit card that charges 18.99% interest. You receive an offer for a new credit card with a teaser rate of 9.99% for the first 6 month...after that the rate goes up to 24.99%. 14a) What is the total annual interest on the current credit card? 14b) What will be the interest in the first year after you switch? 14C) Should you switch? why?
2. Say you purchase a computer for $1300 at 7% interest and want to have it paid off in 48 months. Use the simple interest formula. a) Calculate the monthly payment necessary to pay off the principal and the interest. b) Calculate the APR. Write out the formula first to show your work.
4) Find the account balance at the end of 10 years, if you deposit 15,000 in an account today if a. The bank pays interest at 12% per year. b. The bank pays interest at 6% every 6 months. c. The bank pays interest at 3% per quarter, d. The bank pays interest at 1% per month. What do you observe when you compare the balances for the four scenarios listed.
K You plan to deposit $700 in a bank account now and $100 at the end of the year. If the account earns 7% interest per year, what will be the balance in the account right after you make the second deposit? ... The balance in the account right after you make the second deposit will be $ (Round to the nearest dollar.)
do solve it asap Suppose you plan to deposit $1000 at the end of each month into an account for eight months. If the account pays a simple interest equal to 15% annually, what is the value of your deposits at the end of the year?
Suppose you'd like to save enough money to pay cash for your next car. The goal is to save an extra $⁢28,000 over the next 33 years. What amount must be deposited quarterly into an account that earns 4.7% interest, compounded quarterly, in order to reach your goal? Round your answer to the nearest cent, if necessary.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS