a. How much will you pay each month? How does this compare with the credit-card payment each mont? Select the corect choice below and fil in the answer boxes to complete your choice (Do not round unt the final answer. Then round to the nearest dollar as needed.) OA The monthly payments for the bank loan are approximately $ This is $ more than the monthly credt-card payments OB. The monthly payments for the bank loan are approximately s 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? Select the conect choice below and n in the answer boxes to complete your e (Use the answer from part a to find this answer. Round to the nearest dollar as needed.) r choice This is $ more than the total credit-card interest OA The total interest paid over 6 years for the bank loan is approximately $ This is $ less than the total credt-card interest OB. The total interest paid over 6 years for the bank loan is approximately $
a. How much will you pay each month? How does this compare with the credit-card payment each mont? Select the corect choice below and fil in the answer boxes to complete your choice (Do not round unt the final answer. Then round to the nearest dollar as needed.) OA The monthly payments for the bank loan are approximately $ This is $ more than the monthly credt-card payments OB. The monthly payments for the bank loan are approximately s 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? Select the conect choice below and n in the answer boxes to complete your e (Use the answer from part a to find this answer. Round to the nearest dollar as needed.) r choice This is $ more than the total credit-card interest OA The total interest paid over 6 years for the bank loan is approximately $ This is $ less than the total credt-card interest OB. The total interest paid over 6 years for the bank loan is approximately $
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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Question
Transcribed Image Text:P.
Use PMT-
to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of
1-1+
$6100 and an annual interest rate of 19%. With no further purchases charged to the card and the balance being paid off over five years.
the monthly payment is $158, and the total interest paid is $3380. You can get a bank loan at 11.5% 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 mont? Select the corect dchoice below
and fil in the answer boxes to complete your choice.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
OA The monthly payments for the bank loan are approximately S
This is S more than the monthly credit-card payments.
OB. The monthly payments for the bank loan are approximately S
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? Select the corect choice below and fil
in the answer boxes to complete your choice
(Use the answer from part a to find this answer. Round to the nearest dollar as needed.)
OA The total interest paid over 6 years for the bank loan is approximately $
This is S
more than the total credit-card interest.
This is $
less than the total credit-card interest
OB. The total interest paid over 6 years for the bank loan is approximately $
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