Assume that you start with a balance of $4000 on your Visa credit card. During the first month, you charge $600, and during the second month, you charge $400. Assume that Visa has financecharges of 30% APR and that each month you make only the minimum payment of 2.5% of the balance. Complete the following table. (Round your answers to the nearest cent.)PreviousFinanceNewMinimum paymentPurchasesbalancechargebalanceMonth 1$4000.00Month 22424

Finance charges are levied by credit card companies if credit card holder fails to make payment on…

Answered: Assume that you start with a balance of…

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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Do you have a total credit card debt of $6000 you receive an offer to transfer this debt to a new card with an introductory APR of 5.5% for the first three months after that direct becomes 18% a)What is the monthly interest payment on $6000 during the first three months?(I assume you pay nothing towards principle I don’t change any further amount on the new card) B) what is the monthly interest payment on $6000 after the first three months
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $4000 balance, 16%, $2,500 payment (a) previous balance method $ 53.33 (b) adjusted balance method $ 20.00 (c) average daily balance method x
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $6,000 balance, 14%, $60 payment (a) previous balance method (b) adjusted balance method (c) average daily balance method 2$
Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) 30-day billing cycle Previous balance 9/16 Billing date Payment Charge: Home Depot Payment Cash advance $ 1,400 9/19 54 cr. 9/30 10/3 10/7 1,200 54 cr. 64 Finance charge is 1.25% on average daily balance. Average daily balance Finance charge %24
Assume you have a balance of $1000 on a credit card with an APR of 24%, or 2% per month. You start making monthly payments of $200, but at the same time you charge an addicional $90 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. The following table shows how you can calculate your monthly balance. Complete and extend the table to show the balance at the end of each month until the debt is paid off. How long does it take to pay off the credit card debt? Fill out the table row by row, and continue until the last full payment (Round to the nearest cent as needed) Month Payment 0 1 $2 $200 $200 $200 $200 Continue until the last full payment 3 4 $200 Expenses $90 $90 $90 590 Interest 0.02 $1000-$20.00 $90 Therefore, ain)th partial payment will pay off the loan, which means the loan will paid off in months New Balance $1000 $1000-$200-500-$20.00-$910.00
You have an account with a $1000 credit limit that charges 12.25% interest using the average daily balance method. Assuming a 30 day month, you start with a balance of $200 on Day 1. On Day 5, you charge $50 and you pay $150 on Day 15. What is your average daily balance, assuming charges and payments begin the next day? Round your answer to 2 decimal places.
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $4000 balance, 14%, $2,500 payment (a) previous balance method $ (b) adjusted balance method $ (c) average daily balance method $ Need Help? Read It
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $600 balance, 18%, $550 payment; average daily balance method
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $2,000 balance, 15%, $70 payment (a) previous balance method $ 24.76 (b) adjusted balance method $ 23.79 (c) average daily balance method $8.79
A store will give you a 1.00% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? Note: Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. (Round your answer to the nearest cent.) Balance: $350 Rate: 18% Payment: $300 Method: Average daily balance
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