## Managing Credit Card Payments: An Educational Example**Scenario:**On January 1, you have a balance of $6,200 on a credit card with an APR (Annual Percentage Rate) of 18%. You aim to pay off this amount within one year without making any additional charges to the card after January 1.### Action Items:a. **Calculate Your Monthly Payments.**b. **Determine Total Payments Over One Year:** - Calculate how much you will have paid in total by the time the card is paid off since January 1.c. **Interest Calculation:** - Identify what percentage of your total payment consists of interest.---### Worksheet:a. **Monthly Payment Calculation:** - The monthly payment is $_____. - Note: Do not round interim calculations—round only your final answer to the nearest cent.This exercise involves understanding credit card interest and managing monthly budgets to effectively pay down debt within a specified time frame.

The given problem can be solved using PMT function in excel. PMT function computes installment…

Answered: pose that on January 1 you have a…

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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On April 5, Jessica had a balance due on her credit card of $927.85. From April 5 through May 4, Jessica charged an additional $335.66 and made a payment of $700. Find her new balance due on May 5 assuming the previous balance method is used and the interest rate is 1.8% per month. O A. $580.21 B. $1305.79 C. $227.85 D. $16.70
What payment should be made on an invoice for $500 dated November 16, carrying terms 4/10, net 30?
What payment on January 31, 2014 will settle an invoice for $3,500 dated January 27, 2014 and payment terms 3/10 E.O.M.? Round to the nearest cent
Suppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $383.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.)
You receive an invoice for $17,400 with terms of 3/15, n/60. The supplier has a policy of allowing a cash discount for partial payments and you pay $8,000 within the discount period. Calculate the amount of credit you will receive for this payment.
Suppose your MasterCard calculates interest using the average daily balance method, and the monthly interest rate is 1.9%. The itemized billing for the month of August is shown below The average daily balance has already been computed and is $2739.52. (a) Find the interest due for this month. $ (b) Find the total balance owed on the last day of the billing period. $ (c) This credit card requires a $15 minimum payment or 1/24 of the amount due, whichever is higher. What is the minimum monthly payment due for this month? $
Please see below. I need help with the part a2.
Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 19.00%, with interest paid monthly, what is the card's EFF%? a.18.58% b. 19.52% с. 20.75% d. 21.94% e. 22.65%
Use the unpaid balance method to find the finance charge on the credit card account. Last month's balance, the payment, the annual interest rate, and any other transactions are given. Last month's balance, $400 Payment, $350 Interest rate, 16.7% Bought plane ticket, $100 Bought luggage, $135 Paid hotel bill, $195
For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.2% per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $743.26 July 8 Billing Date July 15 Payment July 26 Lunch August 5 Concert tickets $300 $45.35 $87.57 (a) The average daily balance is $ (Round to the nearest cent as needed.)
Melissa received an invoice for $5,000 that had payment terms of 2/15 n/30. He made a partial payment of $3,000 during the discount period. a. Calculate the amount credited. Round to the nearest cent b. Calculate the balance on the invoice after the partial payment was made.
uppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $389.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.) Statement of Account Billing cycle: July 1–31 DATE DESCRIPTION OF TRANSACTIONS CHARGES July 04 Kit and Capoodle Pets $109.08 July 08 Payment 61.00 July 16 Cash advance 98.82 July 22 Mountain Vineyards 31.37 July 29 Vu Video (credit) 95.97 $

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pose that on January 1 you have a balance of $6200 on alculate your monthly payments. /hen the card is paid off, how much will you have paid si /hat percentage of your total payment from part (b) is int