You currently work part-time making $1,500 per month. You have $1,000 in your bank account and drive a 2010 Honda Civic worth $5,000. You hope to pay off the loan on the car next year butstill owe $1,000. You use your credit card for simple monthly expenses like groceries and gas with the intention of always paying it off before you owe any interest. Currently the card has anoutstanding balance of $300. You have few items of any value (you rent your apartment which comes furnished) but you do have a laptop that you use for school. You estimate it is worth $500.You are in your last semester of college. Because you work part-time you are going to graduate with only $5,000 in student loans. Based on this information what is your Net Worth? Question 8Answer a. $1,700 b. $800 c. $200 d. $1,200

Net worth is an important financial metric for individuals. It helps us to determine the financial…

Answered: You currently work part-time making…

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

CREDIT CARD COMPOUNDING INTEREST. Your friend wants to purchase a new TESLA car for $65,000. All wheel drive, Long range battery, and dual motors. He has no savings, so he needs to finance the entire purchase amount. With no down payment, the interest rate on the loan is 12 % and the maturity of the loan is 3 years. His monthly payments will be $2158.93. He earns $1900.00 a month. He has a credit card limit of $10,000 and an interest rate of 25.99%. If he uses all his monthly earnings to make the monthly payments on the car: 19a) how much will he add each month to his credit card balance if he uses it to finance the remainder of the car? 19b) What will be the finance charges on his credit card for the year? (Assuming he makes no payments towards his credit card). 19c) What are the finance charges after 2 year, if he continues to add the remainder of the car payments and not make any payments towards his credit card?
You have a $1,400 balance on your 15% credit card. You have lost your job and been unemployed for 6 months. You have been unable to make any payments on your balance. However, you received a tax refund and want to pay off the credit card. How much will you owe on the credit card if you have not made a payment for 6 months? Note: Round your answers to the nearest cent. How much interest will have accrued? Note: Round your answer to the nearest cent. What will be the effective rate of interest after the 6 months?
Mary uses her credit card frequently. Which of the following is the best strategy to minimize the amount of interest paid when using a credit card? Pay off the credit card balance monthly. ○ Search for and use a credit card with the lowest APR. Search for and use a credit card that compounds interest monthly. Pay more than the minimum monthly balance each month.
Karen has a QuikTrip credit card. The card has a balance of $988.62 with an APR of 28.75%. The QuikTrip expects the minimum payment to be 4.1% of the balance. What is Karen’s minimum payment? How long will it take Karen to pay off her QuikTrip credit card? How much interest will Karen pay if she only pays the minimum payment? Show steps
You want to financed a car that advertised at $31318 but you don't have money. However after checking your credit the dealer offered you that if you pay $571 per month for 6 years, they will give you the car. What is the total amount you will have to pay to the dealer if you finance the car? Write the answer without the "$" sign. Add your answer I
Recently, you made multiple large purchases on your credit card totaling $14.700. The interest rate on your credit card is 19.1% per year, compounded monthly, and your statement says your minimum payment is $275 per month. a. How many minimum payments will you need to make to pay off your purchases, assuming you cut up your credit card and do not make any additional purchases? Round your answer up to the nearest number of a payments. You will need minimum payments. b. How much total interest, to the nearest dollar, will you pay by making the minimum monthly payment? Total interest = S
You ran a little short on your spring break vacation, so you put $1,000 on your other credit card. You can afford only the minimum payment of $60 per quarter. The interest rate on the credit card is 18 per year compounded quarterly. How many years will you need to pay off the $1,000? I want to solve this problem using the financial calculator so if your able to show me what to punch in that would be great
Your birthday is next week and instead of other presents, your parents promised to give you $1,300 in cash. Since you have a part-time job and, thus, don't need the cash immediately, you decide to invest the money in a bank CD that pays 5.40 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny) Value of investment after 2 years $
Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .
Your grandfather put some money in an account for you on the day you were born. You are now 16 years old and are allowed to withdraw the money for the first time. The account currently has $5,311 in it and pays an 11% interest rate. a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account? a. How much money would be in the account if you left the money there until your 25th birthday? If you left the money there until your 25th birthday, the amount in the account would be $ nearest cent.) (Round to the

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