You ran a little short on your break vacation, so you put $1,000 on your credit card. You can afford only the minimum payment of $20 per month. The credit card carries an APR of 18 percent compounded monthly. How long will you need to pay off the $1,000?

You ran a little short on your break vacation, so you put $1,000 on your credit card. You can afford only the minimum payment of $20 per month. The credit card carries an APR of 18 percent compounded monthly. How long will you need to pay off the $1,000?

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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Question

ANNUITIES - NUMBER OF PAYMENTS
• You ran a little short on your break vacation, so you
put $1,000 on your credit card. You can afford only
the minimum payment of $20 per month. The credit
card carries an APR of 18 percent compounded
monthly. How long will you need to pay off the
$1,000?

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