With only a part-time job and the need for a professional wardrobe, Rachel quickly maxed out her credit card the summer after graduation. With her first full-time paycheck in August, she vowed to pay $250 each month toward paying down her $11,375 outstanding balance and not to use the card. The card has an annual interest rate of 12%. How long will it take Rachel to pay for her wardrobe? Should she shop for a new card? Why or why not? If Rachel continues to pay $250 per month, it will take her ______ months to pay for her wardrobe. Should she shop for a new card

With only a part-time job and the need for a professional wardrobe, Rachel quickly maxed out her credit card the summer after graduation. With her first full-time paycheck in August, she vowed to pay $250 each month toward paying down her $11,375 outstanding balance and not to use the card. The card has an annual interest rate of 12%. How long will it take Rachel to pay for her wardrobe? Should she shop for a new card? Why or why not? If Rachel continues to pay $250 per month, it will take her ______ months to pay for her wardrobe. Should she shop for a new card

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 89TPC

See similar textbooks

Related questions

Q: You have just entered college and have decided to pay for your living expenses using a credit card…

A: This question requires us to find the accumulated value of the monthly charges a the end of 46…

Q: Steven is beginning a new job but has not yet been paid. He needs $700 to pay his rent this month.…

A: Effective Annual Interest Rate (EAR), also known as the annual equivalent rate (AER) or annual…

Q: You have just entered college and have decided to pay for your living expenses using a credit card…

A: Future Value is defined as the current asset value at the date of the future on the basis of the…

Q: Flip opened a credit card account. During the first month he purchased new cloths that totaled…

A: Purchase made on credit card: $1,505.57.Monthly decrease in balance: 1.9%

Q: You have just entered college and have decided to pay for your living expenses using a credit card…

A: An equal amount paid each period is known as annuity. The future value is the accumulated value of…

Q: Morgan lives alone and needs to move to start a new job. She drives 400 kilometres closer to her new…

A: Answer:- Moving expenses meaning:- The reasonable costs of moving home goods and personal…

Q: Starting on the day Kelly was born, her mother has invested $50 at the beginning of every month in a…

A: The objective of the question is to calculate the future value of a series of monthly deposits for…

Q: Marina had an accident with her car and the repair bill came to $900. She didn't have any emergency…

A: The first part of the question is asking us to calculate the annual interest rate Marina was charged…

Q: Kayla just signed a contract to purchase her inventory exclusively from one vendor. The contract…

A: Credit purchase is usual transaction in day to day operations but pay on right time plays an…

Q: Amanda must decide to buy or lease a car that she has selected. She has negoiated a purchase price…

A: Given information: Purchase price is $35,000 Down payment $3,000 Paying monthly $751.68 for 48…

Q: Phoebe realizes that she has charged too much on her credit card and has racked up $6,000 in debt.…

A: Here, Present Value is $6,000 Monthly Payment (PMT) is $200 Interest Rate is 18% Therefore, Monthly…

Q: teven is thinking about buying a duplex. His monthly expenses will be $888 for the mortgage, $480…

A: The mortgage can be defined as a type of loan taken to purchase land, home, property, etc by making…

Question

If Rachel continues to pay $250 per month, it will take her ______ months to pay for her wardrobe.

Should she shop for a new card?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Shandra and her friends were planning on going on a trip to the Caribbean over Christmas break. She had never owned a credit card before, and her college-student budget and bank accounts couldn’t absorb the entire cost of the trip. She opened a new credit card to pay for the remainder of the plane ticket and hotel fees. The card had a $3,000 credit limit with a 23.20% interest rate. The balance on her card at the end of the month was $1380. Assume that she added no new charges to the card. Use a spreadsheet to calculate how many payments it would take for Shandra to pay off her vacation if she paid the minimum $48 per month. __________Payments
Like many college students, Diana applied for and got a credit card that has an annual percentage rate (APR) of 15%. The first thing she did was buy a new DVD player for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15. Assume Diana makes her payment when she sees her statement at the end of each month. If Diana doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the DVD player? Assume that the credit card company compounds interest at the end of each month. O 35.8 months O 37.8 months O 46.3 months O 50.0 months O 32.6 months Diana now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates). She decides to pay twice the minimum monthly payment ($30 per month), instead. How much quicker will she pay off the DVD player? 19.5 months O 26.4 months O 21.1…
Lindsey sold stationery to her family and her mother’s friends. She deposited the $125 she earned in a savings account. The account earns 5.18% interest annually. If she does not deposit or withdraw any money for 18 months, how much will she have in her account?
If Maria uses her card only for her books this fall and next fall, how will these purchases affect her monthly payments if she still wants to eliminate her balance and be debt-free in 24 months? (Assume that her book purchases are for $600 and are 3 months and 15 months away.). Use an APR of 18%.
A career counselor decides to make monthly payments of $150 on credit card debt of $3489.64 and discontinue using the credit card. (a). Assuming the annual interest rate is 22.2%, how many months will it take her to repay the debt? Round to the next month. b) How many fewer months would it take to repay the debt if the counselor makes monthly payments of $200. Round to the next month.
for just one year of spending $100 on dinner every other saturday how much would debbie pay in interest for her credit card balance of $2400 if she pays the minimum payment $48 per month? how long will it take debbie to pay off this amount.
Maria will be a college sophomore next year, and she is determined to have her own credit card. She will not be employed during the school year but is convinced that she can pay for credit card expenses based on her summer earnings. Maria's parents have read a number of articles about the problems of credit cards and college students, including examples of students leaving school after a downward spiral of credit cards, overspending, working to pay bills, worrying about bills, working more hours to pay bills, and eventually withdrawing from school. When Maria showed up with a handful of applications including Visa, a Gold MasterCard, Discover, a Visa sponsored by her university, an American Express, a secured MasterCard, and a gas company card her parents were overwhelmed. Maria admitted she didn't want them all. "I'm not stupid," she declared. Since Maria obviously needed to learn about credit cards, her parents agreed to co-sign her application on one condition. She…
Maria will be a college sophomore next year, and she is determined to have her own credit card. She will not be employed during the school year but is convinced that she can pay for credit card expenses based on her summer earnings. Maria's parents have read a number of articles about the problems of credit cards and college students, including examples of students leaving school after a downward spiral of credit cards, overspending, working to pay bills, worrying about bills, working more hours to pay bills, and eventually withdrawing from school. When Maria showed up with a handful of applications including Visa, a Gold MasterCard, Discover, a Visa sponsored by her university, an American Express, a secured MasterCard, and a gas company card her parents were overwhelmed. Maria admitted she didn't want them all. "I'm not stupid," she declared. Since Maria obviously needed to learn about credit cards, her parents agreed to co-sign her application on one condition. She…
Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a "nest egg" to start her off. Michelle works out her budget and decides she can afford to set aside $80 per month for savings. Her bank will pay her 4% per year, compounded monthly, on her savings account. What will be Michelle's balance in five years?
answer this fucking question or else because i really need this answer. John spends $600 using a new credit card. The credit card has a limit of $1,000 with a $35 late fee, a $35 over-limit fee, a 0% introductory APR for 12 months, and a 19.9% APR on purchases after the introductory period. If John does not use the card to purchase anything else, how much must he pay every month during the first year to avoid any fees? If he ends up with a balance of $30 after the first year, what charges will apply? like stop playing with me rn and answer this .-.
Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500 payable in 12 months with interest at 10 percent as payment for some carpentry work you did for a friend. You have some reason to believe the maker of the note is in financial difficulty and may not be able to pay the note when it is due. You discuss with an elderly neighbor the possibility of her buying the note from you as an investment, and she agrees to buy it from you for $3,000. Would it be ethical for you to indorse the note with a qualified indorsement ("without recourse")?
Rebecca carries a balance on her credit card each month. Today is the first day of the new. 28-day billing cycle. The current balance is x and the APR is 24%. Rebecca is buying a friend an expensive gift that costs $1,400 that she plans to put on her credit card. This will be her only purchase this month. She will bemaking this purchase on the last day of the month. Part A if her finance charge will be $51 write and solve an equation to determine her current balance on her credit card show your work. Part B How much in finance charges can she save by making the purchase on the last day of the billing versus the first day of billing? Explain