Jayce bought new shoes for running and bicycling, a new wetsuit, and a new bicycle. Altogether, the cost was $2756.43. He has the following two credit options an d plans to pay the minimum payment each month: -A line of credit at 8.9%, compounded monthly, with a minimum monthly payment of $50. -A credit card at 15.2%, compounded daily, with a minimum monthly payment of $60. Question- A) How long would it take Jayce to pay off the line of the credit? How long would it take him to pay off the credit card? B)Which credit option do you think Jayce choose? Explain. C)If Jayce wants to pay off the loan in a year, what will his payments have to be?
Jayce bought new shoes for running and bicycling, a new wetsuit, and a new bicycle. Altogether, the cost was $2756.43. He has the following two credit options an d plans to pay the minimum payment each month: -A line of credit at 8.9%, compounded monthly, with a minimum monthly payment of $50. -A credit card at 15.2%, compounded daily, with a minimum monthly payment of $60. Question- A) How long would it take Jayce to pay off the line of the credit? How long would it take him to pay off the credit card? B)Which credit option do you think Jayce choose? Explain. C)If Jayce wants to pay off the loan in a year, what will his payments have to be?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jayce bought new shoes for running and bicycling, a new wetsuit, and a new bicycle. Altogether, the cost was $2756.43. He has the following two credit options an d plans to pay the minimum payment each month:
-A line of credit at 8.9%, compounded monthly, with a minimum monthly payment of $50.
-A credit card at 15.2%, compounded daily, with a minimum monthly payment of $60.
Question-
A) How long would it take Jayce to pay off the line of the credit? How long would it take him to pay off the credit card?
B)Which credit option do you think Jayce choose? Explain.
C)If Jayce wants to pay off the loan in a year, what will his payments have to be?
D) write term of each option.
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