Suppose a credit card was used to make a $7800 purchase at 16.8% interest with a monthly payment of $193.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 $7800 purchase at 16.8% interest with a monthly payment of $193.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.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Suppose a credit card was used to make a $7800 purchase at16.8% interest with a monthly payment of $193. 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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