Suppose you owe $1,000 on your credit card. The annual percentage rate (APR) is 12%, compounded monthly. The credit card company says your minimum monthly payment is $14.60. a. If you make only this minimum payment, how long will it take for you to repay the $1,000 balance (assuming no more charges are made)? b. If you make the minimum payment plus $7.64 extra each month (for a total of $22.24), how long will it take to repay the $1,000 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b). a. It will take b. It will take months for you to repay the initial balance. (Round to the nearest whole number.) months for you to repay the initial balance. (Round to the nearest whole number.) (Round to the nearest dollar.) c. The difference in the total interest paid in Part (a) and Part (b) is $

Suppose you owe $1,000 on your credit card. The annual percentage rate (APR) is 12%, compounded monthly. The credit card company says your minimum monthly payment is $14.60. a. If you make only this minimum payment, how long will it take for you to repay the $1,000 balance (assuming no more charges are made)? b. If you make the minimum payment plus $7.64 extra each month (for a total of $22.24), how long will it take to repay the $1,000 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b). a. It will take b. It will take months for you to repay the initial balance. (Round to the nearest whole number.) months for you to repay the initial balance. (Round to the nearest whole number.) (Round to the nearest dollar.) c. The difference in the total interest paid in Part (a) and Part (b) 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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Similar questions

You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? $ each month
You have $5,000 on a credit card that charges a 19% interest rate. If you want to pay off the credit card in 3 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?.
You wish to make 4 equal annual deposits into a savings account such that at the time of your last deposit there is $108,581 in the savings account. If the interest rate on the account is an annual nominal interest rate of 3.9% compounded daily, how much must the equal annual deposits be? Provide an exact answer to two decimal places. -Be sure to use the correct annual interest rate when determining the required annual deposit (i.e. you must use the effective annual interest rate) -Use 365 days for the number of days in a year
Your credit card has a balance of $4500 and an interest rate of 22%. The credit card requires a minimum payment of 3%. What is your minimum payment? What is your interest for 1 month? What is your new balance?
You borrow $260,000.00 that charges you 6.1% interest, compounded monthly. You will make payments monthly in the amount of $1,900.00. How many payments will it take for you to payoff the loan? It will take monthly payments. (Round to 2 decimal places.)
Only type answer and give answer fast
Assume that you have a balance of $4200 on your Discover credit card and that you make no more charges. Assume that Discover charges 25% APR and that each month you make only the minimum payment of 2.2% of the balance. What will the balance be after 10 years? (Enter your answer rounded to the nearest cent.)
A commercial bank offers you a credit card with an annual percentage rate APR = 9%, compounding monthly. What’s the credit card’s nominal annual rate?
You owe $7200 on a credit card, your company says the minimum payment is 3% of what you owe. How long would it take you to pay it off just paying the minimum at 22% APR?
You charged $3,172 on a credit card. If you pay the minimum payment per month of $46.69, you will pay it off after making 96 payments. How much total interest will you pay?
Suppose your Visa credit card charges an APR of 13.5%, compounded monthly and your current statement shows a balance of $758.50.a) If you make no payments and no additional purchases for one year, what will bethe amount owed at the end of that year?b) How much total interest will be paid?c) What is the nominal rate?d) What is the effective annual rate (EAR)?e) Suppose this credit card company requires a minimum monthly payment of $25.Assuming that no additional purchases are made and also assuming that this minimum amount is paid every month, prepare an amortization schedule for the first three months of payments.
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 3.9 percent per year, compounded monthly for the first six months, increasing thereafter to 18.8 percent per year, compounded monthly. Assuming you transfer the $19,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Interest owed

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