Problem Set for Credit Card DebtMATH 113: Section 9.4aPage 2 of 23. Rachel is purchasing a new camera that costs $3800 for her photography business. Racheluses a credit card that has an APR of 16.99%.a. How long will it take her to pay off the camera if she makes monthly payments of$75?b. How much will she pay in the long run for the camera if she makes monthlypayments of$75?

a.Calculate the maturity period to repay the debt as follows:MS-Excel --> Formulas -->…

Answered: Problem Set for Credit Card Debt MATH…

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 9 Assume that Sean and Catherine only pay the minimum payment on Credit Card #2 (balance $6,500). The minimum balance is 3% of the total balance. What is their minimum monthly payment? $195 Question 10 Using the BankRate calculator and the minimum payment you calculated above, if Sean and Catherine pay the minimum payment plus an additional $25, how many months would it take them to pay off their credit card loan based on a 15.9% APR?
question 16
16. Problem 5.37 (Paying off Credit Cards) eBook Simon recently received a credit card with a 19% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $460.00. The minimum payment on the card is only $10 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) b. If Simon makes monthly payments of $30, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) c. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent.
Question 5: JJ takes out a conventional loan to purchase a car. The interest rate is 6.8% compounded monthly and JJ has six years to repay the $10,000 they borrowed. What are JJ's monthly payments?
5. Kumal wants to sell her townhouse in Whitehorse. She will spend $2100 updating her home. She has $2100 in cash, but she plans to buy a $2100 RRSP. She will need 120 d to pay off any loan. Interest is compounded daily. a) Complete the chart. Option secured personal loan RRSP loan no loan credit card Detalle Buy the RRSP with $2100 cash. Pay for updating with the loan using her home equity as collateral. Pay for updating with the $2100. Buy an RRSP with an RRSP loan. Pay for updating with the $2100. Do not get an RRSP. Buy an RRSP with the $2100. Pay for updating with a credit card with a 30 d grace period. 1125 APR 2.75% 1.75% 0% 20.1% Total amount A-PH1+ 62 b) Which option should Kumal choose? Explain why. c) Which option should Kumal not choose? Explain why. d) Suppose Kumal uses a RRSP loan instead of her credit card. How much interest will she save? What is equity? What is it used for? Total Interest/A-P REFLECTING Suppose Kumal has a loan with simple interest nstead of compound…
3.51 Jennifer Lee, an engineering major in her junior year, has received in the mail two guaranteed-line-of-credit applications from two different banks. Each bank offers a different annual fee and finance charge. Jennifer expects her average monthly balance after payment to be $500 and plans to keep the card she chooses for only 24 months. (After graduation, she will apply for a new card.) Jennifer's interest rate (on her savings account) is 8% compounded daily. Terms Annual fee Finance charge Bank A Bank B $25 Free 1.65% monthly interest rate 20% annual percentage rate (a) Compute the effective annual interest rate for each card. (b) Which bank's credit card should Jennifer choose?
QUESTION 1 Liam can afford $175 per month as a car payment. If Liam can get an auto loan at 4% interest for 5 years, how expensive of a car can Liam afford? Give your answer to the nearest dollar.
Question 1
question 6
Number of Annuity Payments Phoebe realizes that she has charged too much on her credit card and has racked up $10,000 in debt. If she can pay $300 each month and the card charges 18 percent APR (compounded monthly), how long will it take her to pay off the debt? Group of answer choices 1. 33.33 months 2. 27.23 months 3. 46.56 months 4. 69.70 months
Chapter 6 Practice Problem #2
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