(a) What is the starting balance at the beginning of the 4th month? (b) What is the starting balance at the beginning of the 7th month? (c) Your total finance charge is what percent of your total payments? Express your answer rounded to the nearest tenth of a percent.
(a) What is the starting balance at the beginning of the 4th month? (b) What is the starting balance at the beginning of the 7th month? (c) Your total finance charge is what percent of your total payments? Express your answer rounded to the nearest tenth of a percent.
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
Related questions
Question
100%
Please please answer all three subparts.
I will really upvote. Thanks
Transcribed Image Text:Suppose you open a credit card account and charge
$75 to the account on the first of each month to pay
for your cable and Internet subscription. You plan to
pay just the minimum payment each month for the
first 6 months (until your summer job starts). The
APR is 15.99% and the minimum payment is 4.5% of
the balance. Use Excel to fill in the values in the
table below and answer the questions that follow.
Starting
Balance Purchases Purchases Charge Balance Payment
$0
New
Balance + Finance New Minimum
Month
$75
$75
$75
3
$75
4
$75
$75
6.
$75
7
XXX
XXX
XXX
XXX
XXX
Express your answers rounded to the nearest cent.
(a) What is the starting balance at the beginning of the
4th month?
(b) What is the starting balance at the beginning of the
7th month?
(c) Your total finance charge is what percent of your
total payments?
Express your answer rounded to the nearest tenth of a
percent.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
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