Recently, you made multiple large purchases on your credit card totaling $10,350. The interest rate on your credit card is 15.5% per year, compounded monthly, and your statement says your minimum payment is $245 per month. a. How many minimum payments credit card and do not make will need to make off your purchases, assuming you cut up you to рay your any additional purchases? You will need minimum payments. b. How much total interest will you pay by making the minimum monthly payment?
Recently, you made multiple large purchases on your credit card totaling $10,350. The interest rate on your credit card is 15.5% per year, compounded monthly, and your statement says your minimum payment is $245 per month. a. How many minimum payments credit card and do not make will need to make off your purchases, assuming you cut up you to рay your any additional purchases? You will need minimum payments. b. How much total interest will you pay by making the minimum monthly payment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How do I find the minimum payments and the total interest?
Transcribed Image Text:Recently, you made multiple large purchases on your credit card totaling $10,350. The interest rate on your
credit card is 15.5% per year, compounded monthly, and your statement says your minimum payment is
$245
per
month.
a. How
many
minimum payments
will
need
make to pay
off
your purchases, assuming you cut up
you
to
your credit card and do not make any additional purchases?
You will need
minimum payments.
b. How much total interest will you pay by making the minimum monthly payment?
Total interest = $
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education