A credit card offers an introductory rate of 7% compounded monthly for Question 2.2 the first six months, increasing thereafter to 10% compounded monthly. This offer is good as long as you transfer your current debt from your existing card. Assuming that you will transfer $5,000 balance and that you will continue to make $250 monthly payment (without making any subsequent purchases), what would be the credit card balance at the end of the first year? A) $1,696.45 B) $2,000.00 C) $2.793.86 D) Answers A, B and C are not correct

A credit card offers an introductory rate of 7% compounded monthly for Question 2.2 the first six months, increasing thereafter to 10% compounded monthly. This offer is good as long as you transfer your current debt from your existing card. Assuming that you will transfer $5,000 balance and that you will continue to make $250 monthly payment (without making any subsequent purchases), what would be the credit card balance at the end of the first year? A) $1,696.45 B) $2,000.00 C) $2.793.86 D) Answers A, B and C are not correct

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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your credit card has a balance of $3000 in an annual interest rate of 17% with no further purchase charge to the card and the balance being paid off over five years. The monthly payment is $75 and the total interest paid is $1500. You can get a bank loan at 9.5% with a term of six years complete parts, a and B below. A. How much will you pay each month? How does this compare with the credit card payment each month? A. the monthly payment for the bank loan are approximately $__ This is $__ more than a monthly credit card payments. B. The monthly payments are the bank loan are approximately $__ This is $__ less than the monthly credit card payments. B.How much total interest will you pay? How does this compare with the total credit-card interest? A. The total interest paid over 3 years for the bank loan is approximately$__. This is $__ more than the total credit-card interest. B. The total interest paid over 3 years for the bank loan is approximately $__. This is $__ less than the…
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