Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new interest to 1% of the outstanding principal. The credit card company charges an interest rate of 0.037437% per day. On March 15, Shiing uses his credit card to purchase airline tickets for his family for $2300. He makes no other purchases during March. Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date. Shiing's minimum payment due on April 1 is $
Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new interest to 1% of the outstanding principal. The credit card company charges an interest rate of 0.037437% per day. On March 15, Shiing uses his credit card to purchase airline tickets for his family for $2300. He makes no other purchases during March. Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date. Shiing's minimum payment due on April 1 is $
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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Transcribed Image Text:Shiing Shen Chern's credit card company determines his minimum monthly payment by adding all new interest to 1%
of the outstanding principal. The credit card company charges an interest rate of 0.037437% per day. On March 15,
Shiing uses his credit card to purchase airline tickets for his family for $2300. He makes no other purchases during
March. Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer
parts a and b below.
a) Assuming Shiing had no new interest, determine Shiing's minimum payment due on April 1, his billing date.
Shiing's minimum payment due on April 1 is $
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On April 1, instead of making the minimum payment, Shiing makes a payment of
$700. Assuming there are no additional charges or cash advances, determine Shiing's minimum payment due on May 1.
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