Maddison has been responsible with her credit. Six months ago, she got two creditcards. One that she uses strictly for car expenses and another to pay her utility bills.She pays them off in full each month and never lets them go more than 20 percentover their limit. In addition, she has had a car loan for about four years and has nevermissed a payment. Which of the following ranges does her credit score likely fall in?830-850720-740600-620580-600500-520

Meaning of Credit ScoreA credit score is a numerical representation of an individual's…

Answered: Maddison has been responsible with her…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 22CE

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Gigi’s credit card situation is out of control because she cannot afford to make her monthly payments. She has four credit cards with the following loan balances and nominal interest rates: Card 1, P50,000, 21%; Card 2, P75,000, 24%; Card 3, P25,000, 18%; and Card 4, P100,000, 15%. Interests compounds monthly on all loan balances. Gigi has ultimately decided to consult a credit card loan consolidation company to cover all her credit card dues within a 24-month payment schedule. If all of these credit cards are acquired on the same time, answer the following questions:1. What is the monthly payment due for Card 1? (Round off to the nearest 2 decimal places 2. What is the monthly payment due for Card 2? (Round off to the nearest 2 decimal places) 3. What is the monthly payment due for Card 3? (Round off to the nearest 2 decimal places) 4. What is the monthly payment due for Card 4? (Round off to the nearest 2 decimal places) 5. What must be the rate of return of the funds provided by…
Jane Marks has a restaurant in which she accepts credit cards and checks.Several of the places that Jane shops now accept debit cards and do notaccept checks. Jane’s banker explained that a debit card would immediatelytransfer money into her account, but it would cost $50 per monthfor the equipment and bank charges. Although she requires proper identification,Jane loses approximately $590 a year as a result of bad checks.She also determined that on average, she loses 115 days of interest onall checks because the banks are closed on 11 holidays and weekends (52 weeks * 2 weekend days = 104 + 11 holidays). Jane currently earns3 percent interest on her bank accounts and accepts an average of $2,000 aday in checks.a. What is the total annual cost to Jane for the debit card service?b. What is the benefit?c. Should Jane implement the system?
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRS: Card 1, $4,700, 20%; Card 2, $5,800, 24%; and Card 3, $3,100, 17%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 18% per month on her credit card payments. This company charges 15.5% APR. Is the company's claim correct? Assume a 10-year repayment period. Mary's current minimum monthly payments are $ Mary's minimum monthly payments after loan consolidation will be $[ Is the company's claim correct? Choose the correct answer below. (Round to the nearest cent.) (Round to the nearest cent.) O A. No because Mary's monthly credit card payments will decrease for less than 18%. OB. Yes because Mary's monthly credit card payments will decrease for more than 18%. OC. No because Mary's monthly credit card payments will…
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,500, 21%; Card 2, $5,700, 25%; and Card 3, $3,100, 19%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 16% per month on her credit card payments. This company charges 16.5% APR. Is the company's claim correct? Assume a 10-year repayment period. Mary's current minimum monthly payments are $ (Round to the nearest cent.) Mary's minimum monthly payments after loan consolidation will be $ . (Round to the nearest cent.) Is the company's claim correct? Choose the correct answer below. O A. Yes because Mary's monthly credit card payments will decrease for more than 16%. O B. Yes because Mary's monthly credit card payments will increase for less than 16%. C. No because Mary's monthly credit card payments will…
Mary’s credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,500, 21%; Card 2, $5,700, 24%; and Card 3, $3,200, 18%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary’s attention by stating they can save Mary 25% per month on her credit card payments. This company charges 16.5% APR. Is the company’s claim correct?
Juanita has good credit and gets the lowest interest rate possible for her credit card. She has a balance of $982 on her January statement. What is her periodic rate?
Joelle prefers to pay by credit card, but her card was declined. She B returns home to call her bank. They informed her that her credit limit using this card is $300. The credit card she has currently charges a 19.2% annual interest rate compounded monthly. The table to the right shows the balance, 8, of her account after m months. 100 119.2 142.09 169.37 4 201.89 15 240.65 286.85 Question 2A: Based on the information given, why might Joelle not have been able to use her credit card at Target? Part B: For each time period below, determine the rate of change: month 1 to month 2 month 2 to month 3 month 4 to month 6 month 3 to month 5 The time period with the greatest rate of change is: Part C: What do you notice about the average rate of change in this scenario? What does this indicate about the function we are working with? Please explain your response.
4 Diana Wade is evaluating her debt safety ratio. Her monthly take-home pay is $3,320. Each month, she pays $380 for an auto loan, $120 on a personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Diana’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debt payments that Diana can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Diana’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?
Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00. The interest rate is prime plus 1.5%, and the current prime rate is 4.75%. Regardless of any account transaction activity, her bank requires on the first of every month for her to pay "the greater of 5% of the current balance or $100" from her checking account. She is allowed to exceed her maximum credit limit, but if she does the entire balance is subject to 22% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,200.00. She took advances of $4,000.00, $3,800.00, and $3,200.00 on October 21, November 16, and December 1, respectively. She made payments of $4,300.00, $3,200.00, and $3,500.00 on November 1, November 21, and December 10, respectively. The prime rate decreased by 0.75% on November 7. Complete the repayment schedule below by filling in the interest charges for October, November, and December. Date Balance Annual…
On January 1, 2009, Karina owed $11,981 to her friend Gregory, who was kind enough not to charge Karina any interest. Each month during 2009, Karina paid Gregory some of the money she owed. If Karina still owed Gregory $4,937 on January 1, 2010, what was the average amount of Karina's monthly payments?$ Give answer to the nearest penny.
Nancy Houser has a $1,500 overdue debt for medical books and supplies at Ken's Bookstore. She has only $500 in her checking account and doesn't want her parents to know about this debt. Ken's tells her that she may settle the account in one of two ways since she can't pay it all now: 1. Pay $500 now and $1,200 when she completes her residency, two years from today. 2. Pay $2,000 one year after completion of residency, three years from today. Assuming that the cost of money is the only factor in Nancy's decision and that the cost of money to her is 8%, which alternative should she choose?
William currently owes $14,500 on his credit cards and is having difficulty keeping up with his minimum payments. He has missed multiple payments and is currently paying a 29.99 percent annual percentage rate. He and his wife possess a great home that has a value of $40,000. They have $7,500 in a certificate of deposit earning 4% annual percentage rate. He has come to you weeping, seeking advice. What advice would you give him?

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