8. A credit card company determines a card holder's minimum monthly payment by adding all new interest to 1.5% of theoutstanding principal. The credit card company charges an interest rate of 0.05852% per day. On Novermber 10, acustomer used his credit card to pay for the following business expenses: van repairs ($588), equipment maintenance($476), office supplies ($53), and dinner with clients ($149). Use the given information and the rule that minimum paymentsare rounded up to the nearest dollar to answer parts a and b below.a. Assuming the card holder had no new interest, determine his minimum payment due on December 1, his billing dateThe card holder's minimum payment due on December 1 is $b. On December 1, instead of making his minimum payment, the card holder makes a payment of $200. Assuming thereare no additional charges or cash advances, determine the card holder's minimum payment on January 1The card holder's minimum payment due on January 1 is $

a.) Computation:Hence, the minimum due as on December 1st is $34.55.

Answered: 8. A credit card company determines 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

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