A person borrows $1,950 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month. (a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.) 19.56 ✓% (b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let B, be the balance owed on the card after n months. Find an explicit formula for B B₁ = [PV(1 + r)"] - P (1+r)" -1 X (c) How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.) 15 ✔ months (d) What is the total amount of money the person will have paid for the loan? $ 2250
A person borrows $1,950 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month. (a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.) 19.56 ✓% (b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let B, be the balance owed on the card after n months. Find an explicit formula for B B₁ = [PV(1 + r)"] - P (1+r)" -1 X (c) How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.) 15 ✔ months (d) What is the total amount of money the person will have paid for the loan? $ 2250
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Please help with B
![A person borrows $1,950 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month.
(a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.)
19.56
✓ %
(1+r)"-1
(b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let B, be the balance owed on the card after n months. Find an explicit formula for B
B₁ = [PV(1 + r)" ] - P[ (¹ + r
r
X
(c) How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.)
15
✔ months
NOTES
(d) What is the total amount of money the person will have paid for the loan?
$ 2250
ASK YOUR TEAC](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb232dbf3-87c8-40c1-ad6d-cab85c52dec2%2F33f8cd66-006f-4780-9f32-f437e7d559bc%2Fvofpv5i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A person borrows $1,950 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month.
(a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.)
19.56
✓ %
(1+r)"-1
(b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let B, be the balance owed on the card after n months. Find an explicit formula for B
B₁ = [PV(1 + r)" ] - P[ (¹ + r
r
X
(c) How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.)
15
✔ months
NOTES
(d) What is the total amount of money the person will have paid for the loan?
$ 2250
ASK YOUR TEAC
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