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

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Give answer with calculation and explanation, Provide Correct and Incorrect option explanation
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