Suppose you are planning on transferring your balance of $550to another credit card. There are two options that you have nar-rowed it down to. One card has a 15% APR, and the other onehas a 25% APR. You have carefully considered your budget anddecided that you can afford to pay $75 per month until the bal-ance is paid in full. You have also decided that you will not makeany additional purchases using the card until they have a $0balance.Answer the following questions about the credit cards:How much longer will it take to pay off the card with 25%APR?How much more did you pay in total for the 25% APRcard?

In this we have to calculate monthly interest rate and present value FACTOR and from that we can…

t down to. One card has a 15% APR, and the other c 5% APR. You have carefully considered your budget d that you can afford to pay $75 per month until the paid in full. You have also decided that you will not ditional purchases using the card until they have a E e. r the following questions about the credit cards: How much longer will it take to pay off the card with APR? How much more did you pay in total for the 25% AP

t down to. One card has a 15% APR, and the other c 5% APR. You have carefully considered your budget d that you can afford to pay $75 per month until the paid in full. You have also decided that you will not ditional purchases using the card until they have a E e. r the following questions about the credit cards: How much longer will it take to pay off the card with APR? How much more did you pay in total for the 25% AP

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

Suppose you have a balance of $15000 on your credit card, which has an of APR 24% and requires a minimum payment of 2%. You will stop charging and begin making only the minimum monthly payment. Complete the following sentences. 1. The balance on your account after 24 minimum monthly payments is S Round your final answer to the nearest penny and do not include the s in your answer. 2. It will take minimum monthly payments for the balance of the account to drop below $3750.
Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.
Imagine you have a credit card balance of $1,000 that you would like to pay off within one year. The annual interest rate on that credit card is 16%, but interest compounds monthly, and you are required to make a payment each month. What amount would you have to pay monthly to pay off this balance within one year? Question options: a $90.71 b $80.66 c $83.33 d $99.12
You are shopping and see an item that is normally priced for $900 on sale for 45% off. However, you have a coupon for an additional 25% off. (The cashier will apply your coupon to the sale price, not the normal price.) What is the final cost of the item (before sales tax) after the sale and coupon discounts? Ans: The final cost is $
You are a responsible person, but sometimes you have to charge things to your credit card and pay for them over several months rather than in one payment. Your card has a $1,000 limit. Since you are going to be financing your charges over several months, what is the maximum amount you should owe on your credit card at one time? OA. $200. O B. $400. OC. $800. OD. $1,000. Question 18 Save and Quit You lave a creuit card with a $1,000 limit. You plan to always pay your card off in full each month. What is the amount you can safely owe on your card? DELL $4 4. & 7 e y
Do the relevant calculations so you can indicate which you prefer: a bank account that pays 5.7% per year (EAR) for 3 years or a. an account that pays 2.3% every 6 months for 3 years? b. an account that pays 7.1% every 18 months for 3 years? c. an account that pays 0.29% per month for 3 years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) ..... If you deposit $1 into a bank account that pays 5.7% per year for three years, the amount you will receive after three years is $ (Round to five decimal places.)
3. If you charge $1075 on your credit card and the minimum payment is $96. You only make the minimum payment. a. Does the minimum payment fit in your budget. b. If the APR on the credit card is 18% and there is 31 days in the billing period, how much interest will you owe on the purchase?
A consumer loan requires monthly payments, in equal amounts, $700.00. The next payment is due in one month. Assume that the appropriate discount rate is 21% (APR). What is the effective annual rate? (show them in excel spreadsheet, write your own present value formulas, don't use Excel built-in functions.
A store will give you a 1.00% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? Note: Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
Only type answer and give answer fast
A bank charges you, the credit card holder, 13.24% compounding monthly. Imagine that you have accumulated debt in an amount of $4,000. Your credit card statement shows a minimum monthly payment of $20.00. Assuming you wise up and realize that you better pay off your debt before charging on your card again, how long would it take to pay off the debt completely if you were to make the minimum payments? How long would it take if you were to make a monthly payment of $50.00?
A store will give you a 2.25% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month?

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