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% APR- Card 2: $5,800, 24% APR- Card 3: $3,100, 17% APRInterest 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.---1. Mary's current minimum monthly payments are $_____. (Round to the nearest cent.)2. 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.- A. No, because Mary’s monthly credit card payments will decrease for less than 18%.- B. Yes, because Mary’s monthly credit card payments will decrease for more than 18%.- C. No, because Mary’s monthly credit card payments will increase for less than 18%.- D. Yes, because Mary’s monthly credit card payments will increase for more than 18%.

Credit card loans are unsecured loans extended by financial institutions to individuals. These loans…

Answered: Mary's credit card situation is out of…

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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Tamara is not a big spender and rarely has a credit card balance over $500. What should Tamara look for in a credit card given the way she uses one? Group of answer choices a. A long grace period b. A low interest rate c. A high annual fee d. No grace period e. A high interest rate
June Xu is a registered nurse who earns $3,250 per month after taxes. She has been reviewing her savings strategies and current banking arrangements to determine if she should make any changes. June has a regular checking account that charges her a flat fee per month, writes an average of 18 checks a month, and carries an average balance of $795 (although it has fallen below $750 during 3 months of the past year). Her only other account is a money market deposit account with a balance of $4,250. She tries to make regular monthly deposits of $50–$100 into her money market account but has done so only about every other month. Of the many checking accounts June’s bank offers, here are the three that best suit her needs.• Regular checking, per-item plan: Service charge of $3 per month plus 35 cents per check.• Regular checking, flat-fee plan (the one June currently has): Monthly fee of $7 regardless of how many checks written. With either of these regular checking accounts, she can avoid…
) Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show they are at their credit card limit of $500 this month. Samantha manages her credit well and ensures that her credit card balance is paid off in full each month before the payment deadline while Samuel cannot manage to pay off the minimum amount required each month. Complete the senterice: For Financial Statement reporting purposes, a) It does not matter where Samantha or Samuel report the $500 as long as it is shown on one of their Financial Statements. b) Both Samantha and Samuel would report their $500 on their Balance Sheet as a current liability. c) Both Samantha and Samuel would report their $500 on their Cash Flow statement as an expense. d) Samantha would report her $500 on her Cash Flow statement as an expense while Samuel would report his credit card debt of 5500 on his Balance Sheet as a current liability. e) Samantha would report her $500 on her Balance Sheet as a…
Mrs. Imperiale’s credit card has an APR of 13.2%. She does not ever pay her balance off in full, so she always pays a finance charge. Her next billing cycle starts today. The billing period is 31 days long. She is planning to purchase $7,400 worth of new kitchen cabinets this billing cycle. She will use her tax refund to pay off her entire bill next month. If she purchases the kitchen cabinets on the last day of the billing cycle instead of the first day, how much would she save in finance charges? Round to the nearest ten dollars.
Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 Hak Young is daunted by that monthly payment amount and is trying to figure out how he can make paying off his loan more manageable. He went to his bank and found out he could get a personal line of credit that he could then use to pay off his credit card. The line of credit has an interest rate of 9% compounded monthly. Hak Young realizes that payment amount, even though reduced, is just not manageable based on how much he currently makes and all of the other expenses he also has to budget for. As a result he decides paying off his debt in 10 years is simply more realistic. What would Hak Young’s monthly loan payments be with this new timeline? What will be the total interest paid?
Mary uses her credit card frequently. Which of the following is the best strategy to minimize the amount of interest paid when using a credit card? Pay off the credit card balance monthly. ○ Search for and use a credit card with the lowest APR. Search for and use a credit card that compounds interest monthly. Pay more than the minimum monthly balance each month.
Help me with correct explanation. Not solve in excel works.
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?
Give answer with proper explanation please. Hand written solutions are strictly prohibited.
3) Carlos and Rosa applied for the same credit card from the same bank. The bank checked both of their FICO scores. Carlos had an excellent Credit rating and Rosa had a poor credit rating. a. Carlos was given an APR of 10% while Rosa got a 18%. What are their monthly percentage rate? (Round to the nearest hundredth of a percent) b. If they both had an average daily balance of $1000 for a specific month, and had to pay a finance charge, who would pay more and by how much?
Alek has been a credit card user for several years. He always pays his monthly balance in full on time. He can therefore expect the credit card company to: a. offer him a higher credit line b. offer him a lower credit line c. remove his annual fees d. increase his annual fees e. waive charges for ATM withdrawals [ don't give chatgpt answer]
Selecting a Bank. Julie wants to open a bank account with $43. Julie estimates that she will write 23 checks per month and use her ATM card at the home bank. She will maintain a monthly balance of $500. Which bank should Julie choose? Hillsboro Bank First National South Trust Bank Sun Coast Bank ATM charges: Home bank Free Free Free Free Other bank 5 free, then $1.15 per use $1.40 per use $1.40 per use $1.40 per use Checking: Minimum deposit $100 $28 $1 $1 Minimum balance required to avoid fees* N/A N/A $500 N/A Monthly fees $8.66 $10.11 $15.88 $3.61 Check-writing charges 15 free, then $0.85 per check 10 free, then $0.85 per check Unlimited Each check $0.43 * N/A means monthly fees apply irrespective of account balances. Based on the information given in the chart, which bank should Julie…

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