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My teacher wants us to include our formulas, and factors such as n, I, PMT, FV, and PV

My teacher wants us to include our formulas, and factors such as n, I, PMT, FV, and PV

Essentials Of Investments
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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Please help. My teacher wants us to include our formulas, and factors such as n, I, PMT, FV, and PV

Time line: Formula: Calculations: Grid: PV PMT FV
Transcribed Image Text:Time line: Formula: Calculations: Grid: PV PMT FV
PAYING OFF CREDIT CARDS Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $372.71. The minimum payment on the card is only $10 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Round to the nearest month. b. If Simon makes monthly payments of $35, how many months will it be before he pays off the debt? Round to the nearest month. 5-37 c. How much more in total payments will Simon make under the $10-a-month plan than under the $35-a-month plan? Make sure you use three decimal places for N.
Transcribed Image Text:PAYING OFF CREDIT CARDS Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $372.71. The minimum payment on the card is only $10 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Round to the nearest month. b. If Simon makes monthly payments of $35, how many months will it be before he pays off the debt? Round to the nearest month. 5-37 c. How much more in total payments will Simon make under the $10-a-month plan than under the $35-a-month plan? Make sure you use three decimal places for N.
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