new employee charged $2960 on his credit card to relocate for his first job. After noticing that the interest rate for his balance was 21% compounded monthi hat account. He wishes to pay off his balance in 2 years using automatic payments sent at the end of each month. a. What monthly payment must he make to pay off the account at the end of 2 years? b. How much total interest will he have paid? a. What monthly payment must he make to pay off the account at the end of 2 years? (Round to the nearest cent as needed.) b. How much total interest will he have paid? (Round to the nearest cent as needed.)

new employee charged $2960 on his credit card to relocate for his first job. After noticing that the interest rate for his balance was 21% compounded monthi hat account. He wishes to pay off his balance in 2 years using automatic payments sent at the end of each month. a. What monthly payment must he make to pay off the account at the end of 2 years? b. How much total interest will he have paid? a. What monthly payment must he make to pay off the account at the end of 2 years? (Round to the nearest cent as needed.) b. How much total interest will he have paid? (Round to the nearest cent as needed.)

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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Similar questions

An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per year (payable at the end of each year). He leaves the money and all accrued interest in the account for 7 years. How much will he have at the end of the 7 years?
Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 14 years before new obligations make it impossible to continue. How much money has accrued in the account at the end of the 14 years? (Round your answer to the nearest cent.) $ If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 29 years after the plan began? (Round your answer to the nearest cent.) $
On January 1, Frank bought a used car for $7200 and agreed to pay for it as follows: down payment; the balance to be paid in 36 equal monthly payments; the first payment due February 1; an annual interest rate of 9%, compounded monthly. (a) What is the amount of Frank’s monthly payment? (b) During the summer, Frank made enough money to pay off the entire balance due on the car as of October 1. How much did Frank owe on October 1?
On September 1, 2021, Susan Chao bought a motorcycle for $33,000. She paid $1,000 down and financed the balance with a five-year loan at an annual percentage rate of 7.5 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2021). Two years later, at the end of October 2023, Susan got a new job and decided to pay off the loan. If the bank charges her a 2 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2023?
Tim Houston purchased a wall unit for $2,200. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)
Assume Dave borrowed $360 on his personal line of credit. Interest is charged at a rate of 17 percent, but calculated on a daily basis. Dave is required to pay a minimum of 5 percent of the remaining loan balance every month. What would be Dave's first monthly loan payment? Assume a 30-day month and a 365-day year. (Round your answer to 2 decimal places. Omit the "S" sign in your response.) Monthly loan payment
A person borrowed some money and agreed to pay off the loan by making monthly payments of $75 for three years; the first payment is in one month. The interest rate on the loan is 9%. Find the amount that the person borrowed.
In order to accumulate enough money for a down payment on a house, a couple deposits $374 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 4 years?
W Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans are paid in full ahead of schedule. He is using an employee bonus to pay off his car, which is on a 40-month loan. The total interest for the loan is $2,337, and he has 12 more payments to make. How much finance charge will he get credit for if he pays the loan in full immediately? $ (Round to the nearest cent as needed.)
You have a $1,400 balance on your 15% credit card. You have lost your job and been unemployed for 6 months. You have been unable to make any payments on your balance. However, you received a tax refund and want to pay off the credit card. 1. How much will you owe on the credit card if you have not made a payment for 6 months? 1 month- $1417.50 2 months- $1435.22 3 months- $1453.16 4 months- $1471.32 5 months- $1489.71 6 months- $1508.33 2. How much interest will have accrued? Interest Accurde: $108.33 3. What will be the effective rate of interest after the 6 months? Note: Round your answer to the nearest hundredth percent. ?
To rent an apartment, Nick has to pay the first month of rent plus the last month of rent and a security deposit. The total that he has to come up with is $7,485. He has $1,150 available and decides to take the remainder out as a cash advancement on his credit card. The interest is 25.25 % compounded daily. If Nick waits to pay off the cash advance after 7 months, how much does he owe? Assume that each month has 30 days.
On September 8, Bert Sarkis joined a Christmas club. His bank will automatically deduct $50 from his checking account at the end of each month and deposit it into his Christmas club account, where it will earn 8% interest. The account comes to term on December 1.(a) Find the future value of the account, using an annuity formula. (Round your answer to the nearest cent.)$ (b) Find the future value of the account, using the compound interest formula. (Round your answer to the nearest cent.)$ (c) Find Bert's total contribution to the account.$ (d) Find the total interest. (Round your answer to the nearest cent.)$

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