UNIT 7-20 (Annuity payments) Calvin Johnson has a $4,000 debt balance on his Visa card that charges 15.3 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 2 percent of his debt balance, which is $80. How many months (round up)will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $80 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 3 percent. If Calvin made monthlypayments of $120 at the end of each month, how long would it take to pay off his credit card?a. If Calvin made monthly payments of $80 at the end of each month, how long would it take to pay off his credit card?months (Round up to the nearest unit.)b. If Calvin made monthly payments of $120 at the end of each month, how long would it take to pay off his credit card?months (Round up to the nearest unit.)

To answer the question about how long it will take Calvin Johnson to pay off his $4,000 credit card…

Answered: (Annuity payments) Calvin Johnson has a…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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(Annuity payments) Calvin Johnson has a $4,500 debt balance on his Visa card that charges 17.6 percent APR compounded monthly In 2009, Calvin's minimum monthly payment is 2 percent of his debt balance, which is $90. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $90 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 3 percent. If Calvin made monthly payments of $135 at the end of each month, how long would it take to pay off his credit card? a. If Calvin made monthly payments of $90 at the end of each month, how long would it take to pay off his credit card? months (Round up to the nearest unit.) b. If Calvin made monthly payments of $135 at the end of each month, how long would it take to pay off his credit card? months (Round up to the nearest unit.)
Calvin Johnson has a $5,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 2 percent of his debt balance, which is $100. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $100 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 3 percent. If Calvin made monthly payments of $150 at the end of each month, how long would it take to pay off his credit card?
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