None You have $2,000 on a credit card thatcharges a 18% interest rate. If you want topay off the credit card in 5 years, how muchwill you need to pay each month (assumingyou don't charge anything new to the card)?each month$

Answered: You have $2,000 on a credit card that…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
You have $4,500 on a credit card that charges a 16% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? $ each month
You have $2,500 on a credit card that charges a 15% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? 9.31 M
You have $2,000 on a credit card that charges 18% interest rate if you want to pay off the credit card in 4 years. How much will you need to pay each month?
You have $4,500 on a credit card that charges a 15% interest rate. If you want to pay off the card in 5 years how much will you need to pay each month?
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How much would you need to deposit in an account each month in order to have $50,000 in the account in 8 years? Assume the account earns 4.5% interest. Round your answer to the nearest cent as needed.
You decide to quit using your credit card and want to pay off the balance of $11,800 in 5 years. Your interest rate is 16.05% compounded monthly. What will your monthly payments be? tA How much interest do you pay? LA
Loans You have a $6,000 credit card debt, and you plan to pay it off through monthly payments of $150. If you are being charged 15% interest per year, how long (to the nearest 0.5 years) will it take you to repay your debt?

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You have $2,000 on a credit card that charges a 18% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? each month $