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 Expenses 0 1 2 3 4 $200 $200 $200 $200 Continue until the last full payment $200 $90 $90 $90 $90 Interest 0.02 $1000-$20.00 $90 Therefore, ani th partial payment will pay off the loan, which means the loan will be paid off in months New Balance $1000 $1000-$200-500 $20.00-$910.00

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 Expenses 0 1 2 3 4 $200 $200 $200 $200 Continue until the last full payment $200 $90 $90 $90 $90 Interest 0.02 $1000-$20.00 $90 Therefore, ani th partial payment will pay off the loan, which means the loan will be paid off in months New Balance $1000 $1000-$200-500 $20.00-$910.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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