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(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 monthly payments 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.)

(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 monthly payments 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.)

Essentials Of Investments
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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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 monthly payments 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.)
Transcribed Image Text:(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 monthly payments 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.)
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