please solve A,B and C with work 3. Suppose you have a credit card with a balance of $5200 and an interest rate of 24.3% APR. The minimum payment is $105. The amount of interest due each month is figured as current balance where r is the rate (decimal form) and n is 12. A) Fill in the table, making minimum payments. Month 1 2 3 4 56789 10 11 12 Current balance $5200.00 $5200.30 Interest $105.30 Calculation: Payment Amount applied to principal $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 -$0.30 B) Will you ever be out of debt with the credit card company? Explain. (Hint: Use the Present value formula and solve for n). Calculation: C) Suppose you chose to pay $150 per month instead. Will you ever be out of debt with the credit card company? Explain. (Hint: Use the Present value formula and solve for n). Ca
please solve A,B and C with work 3. Suppose you have a credit card with a balance of $5200 and an interest rate of 24.3% APR. The minimum payment is $105. The amount of interest due each month is figured as current balance where r is the rate (decimal form) and n is 12. A) Fill in the table, making minimum payments. Month 1 2 3 4 56789 10 11 12 Current balance $5200.00 $5200.30 Interest $105.30 Calculation: Payment Amount applied to principal $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 -$0.30 B) Will you ever be out of debt with the credit card company? Explain. (Hint: Use the Present value formula and solve for n). Calculation: C) Suppose you chose to pay $150 per month instead. Will you ever be out of debt with the credit card company? Explain. (Hint: Use the Present value formula and solve for n). Ca
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![please solve A,B and C with work
3. Suppose you have a credit card with a balance of $5200 and an interest rate of
24.3% APR. The minimum payment is $105. The amount of interest due each month is
figured as current balance.. where r is the rate (decimal form) and n is 12.
A) Fill in the table, making minimum payments.
Month
1
2
3
4
5
6
7
8
9
10
11
12
Current
balance
$5200.00
$5200.30
Interest
$105.30
Calculation:
Payment
$105
$105
$105
$105
$105
$105
$105
$105
$105
$105
$105
$105
Amount applied to principal
-$0.30
B) Will you ever be out of debt with the credit card company? Explain. (Hint: Use the
Present value formula and solve for n).
Calculation:
C) Suppose you chose to pay $150 per month instead. Will you ever be out of debt with
the credit card company? Explain. (Hint: Use the Present value formula and solve for
n).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb33a559-23f9-4b77-8c97-2ea0630c42e1%2F1d42716b-e12b-47b9-8857-b7d8460f1312%2Fkuv82nv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:please solve A,B and C with work
3. Suppose you have a credit card with a balance of $5200 and an interest rate of
24.3% APR. The minimum payment is $105. The amount of interest due each month is
figured as current balance.. where r is the rate (decimal form) and n is 12.
A) Fill in the table, making minimum payments.
Month
1
2
3
4
5
6
7
8
9
10
11
12
Current
balance
$5200.00
$5200.30
Interest
$105.30
Calculation:
Payment
$105
$105
$105
$105
$105
$105
$105
$105
$105
$105
$105
$105
Amount applied to principal
-$0.30
B) Will you ever be out of debt with the credit card company? Explain. (Hint: Use the
Present value formula and solve for n).
Calculation:
C) Suppose you chose to pay $150 per month instead. Will you ever be out of debt with
the credit card company? Explain. (Hint: Use the Present value formula and solve for
n).
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