Credit cards are great in moderation. To help boost your FICO score, always pay your credit card balance (all of it) on time. Avoid late fees and penalties! Also keep your credit card charges to one-fourth of your credit limit. For example, a credit card balance of $1,000 will be one-fourth of your limit of $4,000 and will incur a monthly payment of $22.24 at 1% per month. This payment will be avoided if you can pay off all the $1,000 that you have charged to your credit card. About how many months has the credit card company built into its calculation of the $22.24 monthly payment?
Credit cards are great in moderation. To help boost your FICO score, always pay your credit card balance (all of it) on time. Avoid late fees and penalties! Also keep your credit card charges to one-fourth of your credit limit. For example, a credit card balance of $1,000 will be one-fourth of your limit of $4,000 and will incur a monthly payment of $22.24 at 1% per month. This payment will be avoided if you can pay off all the $1,000 that you have charged to your credit card. About how many months has the credit card company built into its calculation of the $22.24 monthly payment?
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
Related questions
Question
Credit cards are great in moderation. To help boost your FICO score, always pay your credit card balance (all of it) on time. Avoid late fees and penalties! Also keep your credit card charges to one-fourth of your credit limit. For example, a credit card balance of $1,000 will be one-fourth of your limit of $4,000 and will incur a monthly payment of $22.24 at 1% per month. This payment will be avoided if you can pay off all the $1,000 that you have charged to your credit card. About how many months has the credit card company built into its calculation of the $22.24 monthly payment?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education