Suppose a credit card was used to make a $12.680 purchase at 14.5% interest with a monthly payment of $288. Complete the following (a) Calculate the time it will take to pay off the debt making only the given payment each month. (b) Calculate the total interest paid. (c) Find the amount of money saved over the lifetime of the debt if twice the amount of the given monthly payment is paid each month.
Suppose a credit card was used to make a $12.680 purchase at 14.5% interest with a monthly payment of $288. Complete the following (a) Calculate the time it will take to pay off the debt making only the given payment each month. (b) Calculate the total interest paid. (c) Find the amount of money saved over the lifetime of the debt if twice the amount of the given monthly payment is paid each month.
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:Suppose a credit card was used to make a $12,680 purchase at 14.5% interest with a monthly payment of $288. Complete the following
(a) Calculate the time it will take to pay off the debt making only the given payment each month.
(b) Calculate the total interest paid.
(c) Find the amount of money saved over the lifetime of the debt if twice the amount of the given monthly payment is paid each month.
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