Kenny realizes that he totally forgot about a credit card that he made some charges to a few months back. He checks the balance and sees that it has gone all the way up to about $1790 (charges, interest, late fees). Because of his late payments, the APR on the card is now at 19.98%. Further, the minimum payment on the card is now $30 every month. Considering that the current balance of the card is $1790 and the APR is 19.98% Calculate the monthly percentage rate and determine how much of the first $30 minimum payment would go towards interest and how much would go towards reducing the balance on the card.
Kenny realizes that he totally forgot about a credit card that he made some charges to a few months back. He checks the balance and sees that it has gone all the way up to about $1790 (charges, interest, late fees). Because of his late payments, the APR on the card is now at 19.98%. Further, the minimum payment on the card is now $30 every month. Considering that the current balance of the card is $1790 and the APR is 19.98% Calculate the monthly percentage rate and determine how much of the first $30 minimum payment would go towards interest and how much would go towards reducing the balance on the card.
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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Kenny realizes that he totally forgot about a credit card that he made some charges to a few months back. He checks the balance and sees that it has gone all the way up to about $1790 (charges, interest, late fees). Because of his late payments, the APR on the card is now at 19.98%. Further, the minimum payment on the card is now $30 every month.
Considering that the current balance of the card is $1790 and the APR is 19.98%
Calculate the monthly percentage rate and determine how much of the first $30 minimum payment would go towards interest and how much would go towards reducing the balance on the card.
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