our credit card has a balance of $5200 and an annual interest rate of 16%. You decide to pay off the balance over three years. If there are no further purchases charged to the card, you must pay $182.85 each month, and you will pay a total interest of $1382.60. Assume you decide to pay off the balance over one year rather than three. How much more must you pay each month and how much less will you pay in total interest? Use PMT=P(R/N)/1-(1+R/N)^-NT to determine the regular payment amount. You will pay $_______ more each month. (Round to the nearest cent as needed.)
our credit card has a balance of $5200 and an annual interest rate of 16%. You decide to pay off the balance over three years. If there are no further purchases charged to the card, you must pay $182.85 each month, and you will pay a total interest of $1382.60. Assume you decide to pay off the balance over one year rather than three. How much more must you pay each month and how much less will you pay in total interest? Use PMT=P(R/N)/1-(1+R/N)^-NT to determine the regular payment amount. You will pay $_______ more each month. (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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Question
(Page 8.8.9)
Your credit card has a balance of $5200 and an annual interest rate of 16%.
You decide to pay off the balance over three years. If there are no further purchases charged to the card, you must pay
You decide to pay off the balance over three years. If there are no further purchases charged to the card, you must pay
$182.85 each month, and you will pay a total interest of $1382.60.
Assume you decide to pay off the balance over one year rather than
three.
How much more must you pay each month and how much less will you pay in total interest?Use
PMT=P(R/N)/1-(1+R/N)^-NT to determine the regular payment amount.
You will pay $_______ more each month.
(Round to the nearest cent as needed.)
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