To rent an apartment, Nick has to pay the first month of rent plus the last month of rent and a security deposit. The total that he has to come up with is $7,485. He has $1,150 available and decides to take the remainder out as a cash advancement on his credit card. The interest is 25.25 % compounded daily. If Nick waits to pay off the cash advance after 7 months, how much does he owe? Assume that each month has 30 days.

To rent an apartment, Nick has to pay the first month of rent plus the last month of rent and a security deposit. The total that he has to come up with is $7,485. He has $1,150 available and decides to take the remainder out as a cash advancement on his credit card. The interest is 25.25 % compounded daily. If Nick waits to pay off the cash advance after 7 months, how much does he owe? Assume that each month has 30 days.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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