Dimi wants to start up his own business. Unfortunately, he doesn’t have a lot of money. That’s why his bank is offering him a credit cards on December 1, 2015. This allows him to spend money and only pay it back when it suits him. On January 1, 2016 Dimi spends 3,000 and then on April 1, 2017 another 5,000 euros. On January 1, 2018, he spends 150 euros every month during one year. Off course a credit card is not cheap. Dimi will need to pay an annual effective interest rate of 3.2% for the first 12 months and an annual effective interest rate of 16.8% for the period after. What does Dimi need to repay the credit card company on December 1, 2018?
Dimi wants to start up his own business. Unfortunately, he doesn’t have a lot of money. That’s why his bank is offering him a credit cards on December 1, 2015. This allows him to spend money and only pay it back when it suits him. On January 1, 2016 Dimi spends 3,000 and then on April 1, 2017 another 5,000 euros. On January 1, 2018, he spends 150 euros every month during one year. Off course a credit card is not cheap. Dimi will need to pay an annual effective interest rate of 3.2% for the first 12 months and an annual effective interest rate of 16.8% for the period after. What does Dimi need to repay the credit card company on December 1, 2018?
(I will send you another question that related to this answered after you provide the solution)
please answer in paper its easy to understand
Step by step
Solved in 3 steps
