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how much interest you will owe on your purchase.

how much interest you will owe on your purchase.

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter6: Using Credit
Section: Chapter Questions
Problem 9FPE
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Question
Learning Task ● (DPR X Interest charged You needed to buy new furniture for your dorm room at college, but unfortunately you didn't have the money to pay for it up front. You decide to put $525 on your credit card to pay for a bedroom set, a desk and a mini fridge. On the due date of the credit card, you were only able to pay the minimum payment of $25. This means you will have to pay interest on the remaining balance you owe. Your credit card has an APR of 17%, and there were 30 days in the billing period. Use the workspace below to calculate how much interest you will owe on your purchase. ● Days in billing period • Balance subject to interest rate For full credit, be sure to show: . The balance after making the minimum payment How you calculated the daily percentage rate All numbers plugged in correctly to the formula above The correct amount of interest owed in addition to the original balance %
Transcribed Image Text:Learning Task ● (DPR X Interest charged You needed to buy new furniture for your dorm room at college, but unfortunately you didn't have the money to pay for it up front. You decide to put $525 on your credit card to pay for a bedroom set, a desk and a mini fridge. On the due date of the credit card, you were only able to pay the minimum payment of $25. This means you will have to pay interest on the remaining balance you owe. Your credit card has an APR of 17%, and there were 30 days in the billing period. Use the workspace below to calculate how much interest you will owe on your purchase. ● Days in billing period • Balance subject to interest rate For full credit, be sure to show: . The balance after making the minimum payment How you calculated the daily percentage rate All numbers plugged in correctly to the formula above The correct amount of interest owed in addition to the original balance %
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