Maria purchases a new big screen television for $850 on her VISA card that carries a favorable interest rate of 8.9% on new charges. a) Determine how long it would take her to pay the television off if she plans on making monthly payments of: $50 $75 $100 b) Compute the total amount that the television cost her with each of the different monthly payments. C) Compute how much money she saved overall by making the $100 payment over the $50 payment. Solve all three subparts early

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
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Maria purchases a new big screen television for $850 on her VISA card that carries a favorable interest rate of 8.9% on new charges.

  • a) Determine how long it would take her to pay the television off if she plans on making monthly payments of:
    1. $50
    2. $75
    3. $100
  • b) Compute the total amount that the television cost her with each of the different monthly payments.
  • C) Compute how much money she saved overall by making the $100 payment over the $50 payment.
  • Solve all three subparts early
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