You have $5500 in credit card bills at an annual interest rate of 26%. You have not made a payment in two years. How much will you owe at the end of the two years?
Q: You have $2,000 on a credit card that charges a 21% interest rate. If you want to pay off the credit…
A: Monthly payment is a fixed periodic payment which is made by a borrower to the lender.
Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. How much will you save…
A: Monthly saving: It is the amount that we have to save monthly to repay its credit card bill fully.…
Q: A bank offers to pay you a stated annual rate of 5%, compounded daily. How many years will it take…
A: Future value refers to the value of a current asset at some future date affected due to inflation,…
Q: Assume you deposit $4,200 at the end of each year into an account paying 10 percent interest. a. How…
A: The fixed periodic regular payments/deposits made at each periodic interval are recognized as…
Q: Assume that you have a balance of $4900 on your Discover credit card and you make no more charges.…
A: A credit card refers to a debt instrument that allows the holder to access funds that they repay at…
Q: You have a loan outstanding. It requires making seven annual payments of $4,000 each at the end of…
A: The future value of the annuity is the sum of a series of payments received at a fixed time in the…
Q: You have credit card debt of $1,000 at 20% APR compounded monthly. If you charge no more purchases…
A: Borrowings are the liability of the borrower which is used to finance the requirement of the funds.…
Q: You have taken out a loan to help with college expenses. The interest rate is 0.4% per month. The…
A: Information given in question ÷ Interest rate is 0.4% per month Monthly interest payment = 80
Q: Each day, you deposit $4.79 into a bank account whose annual rate is 1.6% with daily compounding.…
A: Daily deposit (P) = $4.79 Interest rate = 1.6% Daily interest rate (r) = 1.60%/365 =…
Q: Recently, you made multiple large purchases on your credit card totaling $17,300. The interest rate…
A: Given The Purchases are $17300 Interest rate is 15.4%
Q: You make five annual deposits of $1,800 into a savings account that pays interest at a rate of 3%…
A: Annual deposit=$1800Interest rate for 6 years=3%Last four years=4%Number of deposits=n=1800Find…
Q: Your credit card carries a 23.99%interest rate. You want to pay off your balance of $8700 with equal…
A: When someone needs money to make a purchase, to cover an unexpected expense, such as a medical…
Q: You have $4,500 on a credit card that charges a 16% interest rate. If you want to pay off the credit…
A: Monthly Payment: Monthly payments let a borrower pay down part of the remaining sum, which is…
Q: You have just deposited $3,000 in an unusual bank account that pays interest biannually (ance every…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: The final payment the bank will require you to make is $ (Round to the nearest dollar.)
A: Information Provided: Annual payments = $8000 Interest rate = 6%
Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…
A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )
Q: You borrow the following amount today. The bank gives you a payment holiday of 3 years (that means…
A: Deferred Period (Years) 3 Quarterly time period 20 Loan Principal $5,900.00 Quarterly…
Q: Your bank account pays an interest rate of 6 percent, but this interest is compounded daily (use…
A: Interest rate on account = 6% (compounded daily) Amount A = P(1 + r/n)nt Where A = amount P =…
Q: You have a balance of $8,000 on your credit card. The interest rate is 19% per year. You want to…
A: Solution:- When an amount is due for repayment, it can either be repaid as a lump sum payment or in…
Q: You make a one-time $3,088 deposit into an account which pays 2.8% compounded weekly. If you don't…
A: using excel fv function
Q: You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit…
A: Using excel PMT function
Q: Your bank pays 8.50 percent annual interest compounded semiannually on your savings account. You…
A: Future Value = Present Value * (1+rate)^ n Where, Present Value = $2,500 Rate = 8.5%/2 =4.25%…
Q: a. How many minimum payments will you need to make to pay off your purchases, assuming you cut up…
A: Credit card provides a maximum limit of credit that the person can withdraw from the bank and pay…
Q: Suppose you put $100 into a savings account today, the account pays a nominal annual interest rate…
A: Future Value Future Value is the value which is measured at a specified date at a given interest…
Q: You ran a little short on your spring break vacation, so you put $2,000 on your credit card. You can…
A: Banks issue credit cards to its customers. The customers use the credit cards for making purchases,…
Q: Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off…
A: Balance amount=$4100 Interest rate=15% Time period=3 years 3 years monthly payment=$142.13 3 years…
Q: ssume that you have a balance of $4600 on your Discover credit card and that you make no more…
A: Credit cards are financial instruments that allow users to borrow funds up to a predetermined limit…
Q: You have a loan outstanding. It requires making eight annual payments of $3,000 each at the end of…
A: Future value is that amount which will be require to paid at some specified period of time. It…
Q: You have a loan outstanding. It requires making seven annual payments of $6,000 each at the end of…
A: The future value of the annuity is the sum of a series of payments received at a fixed time in the…
Q: You make a $2500 deposit today in a savings account that pays 3.5% interest APY compounded monthly.…
A: Initial deposit = $2500 Interest rate = 3.5% compounded monthly Period = 10 years
Q: You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit…
A: Compound = monthly = 12Present Value = pv = $4000Interest rate = r = 14 / 12 %Time = t = 4 * 12 = 48
Q: How much would you need to deposit in an account now in order to have $2000 in the account in 15…
A: Future Value is that amount which includes the interest which is received by investing the amount at…
Q: You have $5,000 on a credit card that charges a 19% interest rate. If you want to pay off the credit…
A: To calculate the monthly payment we will use the below formula Monthly payment =…
Q: You have a loan outstanding. It requires making seven annual payments of $6,000 each at the end of…
A: The future value of the annuity is the sum of a series of payments received at a fixed time in the…
Q: You have a loan outstanding. It requires making three annual payments at the end of the next three…
A: Present value is an estimate of the present value of future cash values that may be received at a…
Q: 1. Jake has a credit card with an outstanding balance of $18,504. The credit card company charges an…
A: A credit card is a type of short-term loan instrument that banks and various financial institutions…
Q: You ran a little short on your spring break vacation, so you put $1,000 on your other credit card.…
A: Given: The credit card balance is $1,000 and the rate of interest is 18% compounded quartely. The…
Q: you deposit $9000 into a bank account that pays 3.15% annual interest, compound quarterly. How much…
A: The time value of money is a concept in finance that accounts for the effect of compounding in…
Q: You have a loan outstanding. It requires making nine annual payments of $8,000 each at the end of…
A: A loan refers to a contract between two parties where one party forwards money to the other party on…
Q: 72,000 as a mortgage loan on your house. The interest rate is 5%. The bank has calculated the…
A: The given problem can be solved using NPER function in excel. NPER function computes no. of…
Q: your credit card has a balance of $4,500 and an annual interest rate of 16%. you decide to pay off…
A: The monthly deposit is calculated by dividing the loan balance with the PVIFA at 1.33% and 36…
Q: You have a loan outstanding. It requires making nine annual payments of $5,000 each at the end of…
A: This is the case of Future Value of annuity Future Value of annuity = PMT * [ {(1+ r)n -1}/r]…
Q: You want to have $60,000 in your savings account 12 years from now, and you're prepared to make…
A: When an equal amount is deposited each period at end of the period, it is called ordinary annuity.We…
Q: You plan to deposit $5,500 at the end of each of the next 15 years into an account paying 11.3…
A: a. Periodic deposit, P = $5,500Interest rate, r = 11.3%Number of deposits, n = 15 The future value…
Q: You have an outstanding credit card balance of $3,000. You decide to stop making new charges and pay…
A: The entire amount of charges and transactions that a person has made on their credit card but hasn't…
![You have $5500 in credit card bills at an annual interest rate
of 26%. You have not made a payment in two years. How
much will you owe at the end of the two years?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba38b303-5679-4eb7-9c03-6faac108e73f%2F99f218c3-7b81-41d4-8d05-c33349d06130%2Fgjgpdgw_processed.png&w=3840&q=75)
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- You have a loan outstanding. It requires making nine annual payments of $4,000 each at the end of the next nine years. Your bank has offered to allow you to skip making the next eight payments in lieu of making one large payment at the end of the loan's term in nine years. If the interest rate on the loan is 9%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment? The final payment the bank will require you to make is $52084.15. (Round to the nearest cent.)You deposit $2,239 per year for 14 years, beginning in one year, into an account that pays 12% percent annual interest. How much will you have in your account in 14 years? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR.You have a loan outstanding. It requires making four annual payments of $1000 each at the end of the next four years. Your bank has offered to allow you to skip making the next three payments in lieu of making one large payment at the end of loan's term in four years. If the interest rate on the loan is 7%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment? Round answer to nearest dollar
- You have a loan outstanding. It requires making seven annual payments of $4,000 each at the end of the next seven years. Your bank has offered to allow you to skip making the next six payments in lieu of making one large payment at the end of the loan's term in seven years. If the interest rate on the loan is 6%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?You have a loan outstanding. It requires making three annual payments of $8,000 each at the end of the next three years. Your bank has offered to allow you to skip making the next two payments in lieu of making one large payment at the end of the loan's term in three years. If the interest rate on the loan is 5%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment? The final payment the bank will require you to make is $ (Round to the nearest dollar.)You have maxed out your $10,000 credit card, which is being charged 12.8% annual interest compounded daily. What is the minimum monthly payment to continue to break even? How much should you pay each week to get out of debt within one year?
- You make a $500 deposit today in a savings account that pays 5% interest APY compounded quarterly. If you make no other deposit in this account, how much interest would you have earned two years from today.You just charged $10,500 on your credit card for a vacation. The credit card charges an annual rate of 22.5%. You will be making $200 payment every month for 6 years with the first payment made next month and the last at the end of the sixth year. What will be the remaining balance in your credit card account at the end of the sixth year? $69,968 $12,813 $16,013 $10,032 $3,991,673You have an unpaid balance of $100 on a credit card and plan to pay off the balance in 12 months. Your credit card company charges you 9% interest per year. You transfer the balance to a card that charges only 7% per year and plan to pay off the balance in 6 months. Use the table in Figure 25.1 to calculate the difference in the total charge for interest.
- Assume you deposit $4,400 at the end of each year into an account paying 10.5 percent interest. a. How much money will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 48 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You have a loan outstanding. It requires making nine annual payments of $7,000 each at the end of the next nine years. Your bank has offered to allow you to skip making the next eight payments in lieu of making one large payment at the end of the loan's term in nine years. If the interest rate on the loan is 8%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?You deposit $2,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. A year after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes 8% nominal interest compounded quarterly. Nine years after your deposit, the saving account changes its rate once more to 5% compounded annually. a. How much money should be in the savings account 17 years after the initial deposit, assuming no further changes in the account's interest rate? b. What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Part (a) over the entire 17 year period?
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