Directions:1. At the beginning of the month, you have a balance due of $3,000 and plan to pay off $200 a monthwhile making additional purchases of $115 each month.2. Use the interest of 18% and an annual fee of $49 to complete the repayment chart below.Interest Rate: 18% (APR); 1.5% monthlyAnnual Fee: $49MonthBalancePaymentsPurchasesInterest andInterest andFee (Month)Fee (Total)1$3,000$200$115$49$45$94$3,009$2,969.14$200$115$45.14$139.1456.7.8.9.101112Month #2 (Model): $3,000 (Balance) - $200 (Payment) + $115 (Purchases) + $49 (Annual Fee) + $45(Monthly Interest Payment) = $3,009Month #3 (Model): $3,009 (Balance) - $200 (Payment) + $115 (Purchases) + $45.14 (Interest) = $2,969.14Month #4Month #5Month #6Month #7Month #8Month #9Month #10Month #11Month #12Summary: What can you do as a wise consumer to avoid this debt in the first place or to pay it off quickly ifyou make mistakes and end up in a similar situation?

Debt: It is an amount borrowed by an entity from other parties. It is an obligation under which the…

Directions: 1. At the beginning of the month, you have a balance due of $3,000 and plan to pay off $200 a month while making additional purchases of $115 cach month. 2. Use the interest of 18% and an annual fee of $49 to complete the repayment chhrt below. Interest Rate: 18% (APR); 1.5% monthly Annual Fee: $49 Month Balance Рayments Purchases Interest and Fee (Month) Interest and Fee (Total) $3,000 $200 $115 $49 $45 $45.14 1 $94 $139.14 $3,009 $2,969.14 $200 $115 4 6. 8. 10 11 12 Month #2 (Model): $3,000 (Balance) - $200 (Payment) + $115 (Purchases) + $49 (Annual Fee) + $45 (Monthly Interest Payment) = $3,009 Month #3 (Model): $3,009 (Balance) - $200 (Payment) + $115 (Purchases) + $45.14 (Interest) = $2,969.14

Directions: 1. At the beginning of the month, you have a balance due of $3,000 and plan to pay off $200 a month while making additional purchases of $115 cach month. 2. Use the interest of 18% and an annual fee of $49 to complete the repayment chhrt below. Interest Rate: 18% (APR); 1.5% monthly Annual Fee: $49 Month Balance Рayments Purchases Interest and Fee (Month) Interest and Fee (Total) $3,000 $200 $115 $49 $45 $45.14 1 $94 $139.14 $3,009 $2,969.14 $200 $115 4 6. 8. 10 11 12 Month #2 (Model): $3,000 (Balance) - $200 (Payment) + $115 (Purchases) + $49 (Annual Fee) + $45 (Monthly Interest Payment) = $3,009 Month #3 (Model): $3,009 (Balance) - $200 (Payment) + $115 (Purchases) + $45.14 (Interest) = $2,969.14

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

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