Henry's monthly minimum credit card payment is calculated by first applying 17% APR which is compounded monthly to the outstanding loan amount. Then he pays 2% of that figure. Currently, Henry has a balance of $14375. What will his monthly payment be? $ it's monthly, then take 2% of that number hint: First apply the 17% remember that Assuming that he only pays the minimum what will his new loan balance be? $ Hint: Take the loan with the 17% added on. Then subtract the payment you just found from the first answer.
Henry's monthly minimum credit card payment is calculated by first applying 17% APR which is compounded monthly to the outstanding loan amount. Then he pays 2% of that figure. Currently, Henry has a balance of $14375. What will his monthly payment be? $ it's monthly, then take 2% of that number hint: First apply the 17% remember that Assuming that he only pays the minimum what will his new loan balance be? $ Hint: Take the loan with the 17% added on. Then subtract the payment you just found from the first answer.
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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have tried this question multiple times and i keep getting it wrong
![Henry's monthly minimum credit card payment is calculated by first applying 17% APR, which is compounded monthly to the outstanding loan amount. Then he pays 2% of that figure. Currently, Henry has a balance of $14,375.
**What will his monthly payment be?** $____
*Hint: First apply the 17% remember that it’s monthly, then take 2% of that number.*
**Assuming that he only pays the minimum what will his new loan balance be?** $____
*Hint: Take the loan with the 17% added on. Then subtract the payment you just found from the first answer.*
**How much did his debt decrease by?** $____
*Hint: Compare the original loan amount to the new loan balance.*
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Transcribed Image Text:Henry's monthly minimum credit card payment is calculated by first applying 17% APR, which is compounded monthly to the outstanding loan amount. Then he pays 2% of that figure. Currently, Henry has a balance of $14,375.
**What will his monthly payment be?** $____
*Hint: First apply the 17% remember that it’s monthly, then take 2% of that number.*
**Assuming that he only pays the minimum what will his new loan balance be?** $____
*Hint: Take the loan with the 17% added on. Then subtract the payment you just found from the first answer.*
**How much did his debt decrease by?** $____
*Hint: Compare the original loan amount to the new loan balance.*
**Question Help:** ✉️ Message instructor
[**Submit Question**]
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