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

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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).
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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