A new employee charged $5230 on his credit card to relocate for his first job. After noticing that the interest rate for his balance was 27%compounded monthly, he stopped charging on that account. He wishes to pay off his balance in 2 years using automatic payments sent atthe end of each month.a. What monthly payment must he make to pay off the account at the end of 2 years?b. How much total interest will he have paid?a. What monthly payment must he make to pay off the account at the end of 2 years?(Round to the nearest cent as needed.)

a). Monthly payment to payoff his balance value is calculated using following equation Periodic…

Answered: A new employee charged $5230 on his…

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

A young executive is going to purchase a vacation property for investment purposes. She needs to borrow $96,000.00 for 28 years at 6.1% compounded monthly, and will make monthly payments of $596.59. (Round all answers to 2 decimal places.) What is the unpaid balance after 10 months? $ During this time period, how much interest did she pay? $
A career counselor decides to make monthly payments of $150 on credit card debt of $3,496.46 and discontinue using that credit card. Assuming the monthly interest rate is 1.85%, it will take the counselor approximately 31 months to repay the debt. How many fewer months would it take to repay the debt if the counselor makes monthly payments of $200? (Round your answer to the nearest month.)
1. On September 1, 1998, Susan Chao bought a motorcycle for $10,000. She paid $1,000 down and financed the balance with a five-year loan at an APR of 9.6%, compounded monthly. She started the monthly payment exactly one month after the purchase, i.e., October, 1998. In the middle of October, 2000, she got a new job and decided to pay off the loan. If the bank charges her 1% prepayment penalty based on the loan balance, how much should she pay the bank on November 1, 2000? Answer.
Give answer with calculation and explanation, Provide Correct and Incorrect option explanation
While buying a new car, Alexander made a down payment of $1,100 and agreed to make month-end payments of $290 for the next 5 years and 7 months. She was charged an interest rate of 4% compounded semi-annually for the entire term.a. What was the purchase price of the car?Round to the nearest centb. What was the total amount of interest paid over the term?
You have a $1,400 balance on your 15% credit card. You have lost your job and been unemployed for 6 months. You have been unable to make any payments on your balance. However, you received a tax refund and want to pay off the credit card. How much will you owe on the credit card if you have not made a payment for 6 months? Note: Round your answers to the nearest cent. How much interest will have accrued? Note: Round your answer to the nearest cent. What will be the effective rate of interest after the 6 months?
1) Your job pays you only once a year, for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $75,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.5 percent per year. Your salary will increase at 3.4 % per year throughout your career. How much money will you have on the date of your retirement 35 years from today? Give typing answer with explanation and conclusion
A young executive is going to purchase a vacation property for investment purposes. She needs to borrow $78,000.00 for 29 years at 4.1% compounded monthly, and will make monthly payments of $383.53. (Round all answers to 2 decimal places.) What is the unpaid balance after 12 months? $ During this time period, how much interest did she pay? $
Nikul
A new employee charged $7160 on his credit card to relocate for his first job. After noticing that the interest rate for his balance was 15% compounded monthly, he stopped charging on that account. He wishes to pay off his balance in 3 years using automatic payments sent at the end of each month. a. What monthly payment must he make to pay off the account at the end of 3 years? b. How much total interest will he have paid?
You have a $1,400 balance on your 15% credit card. You have lost your job and been unemployed for 6 months. You have been unable to make any payments on your balance. However, you received a tax refund and want to pay off the credit card. 1. How much will you owe on the credit card if you have not made a payment for 6 months? 1 month- $1417.50 2 months- $1435.22 3 months- $1453.16 4 months- $1471.32 5 months- $1489.71 6 months- $1508.33 2. How much interest will have accrued? Interest Accurde: $108.33 3. What will be the effective rate of interest after the 6 months? Note: Round your answer to the nearest hundredth percent. ?
te.3

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