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Suppose that on January 1 you have a balance of $4,500 on a credit card whose APR is 16%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. A) Calculate your monthly payments. B) When the card is paid off, how much will you have paid since January 1? C) What percentage of your total payment from part B) is interest?

Suppose that on January 1 you have a balance of $4,500 on a credit card whose APR is 16%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. A) Calculate your monthly payments. B) When the card is paid off, how much will you have paid since January 1? C) What percentage of your total payment from part B) is interest?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose that on January 1 you have a balance of $4,500 on a credit card whose APR is 16%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. A) Calculate your monthly payments. B) When the card is paid off, how much will you have paid since January 1? C) What percentage of your total payment from part B) is interest?
Transcribed Image Text:Suppose that on January 1 you have a balance of $4,500 on a credit card whose APR is 16%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. A) Calculate your monthly payments. B) When the card is paid off, how much will you have paid since January 1? C) What percentage of your total payment from part B) is interest?
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