Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off the balance over three years. If there are no further purchases charged to the card, you must pay $142.13 each month, and you will pay a total interest of $1016.68. Assume you decide to pay off the balance over one year rather than three. How much more must you pay each month and how much less will you pay in total interest? PA Use PMT= 1. to determine the regular payment amount. -nt You will pay $ more each month. (Round to the nearest cent as needed.)
Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off the balance over three years. If there are no further purchases charged to the card, you must pay $142.13 each month, and you will pay a total interest of $1016.68. Assume you decide to pay off the balance over one year rather than three. How much more must you pay each month and how much less will you pay in total interest? PA Use PMT= 1. to determine the regular payment amount. -nt You will pay $ more each month. (Round to the nearest cent as needed.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 31P
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![Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off the balance over
three years. If there are no further purchases charged to the card, you must pay $142.13 each month, and you will pay
a total interest of $1016.68. Assume you decide to pay off the balance over one year rather than three. How much more
must you pay each month and how much less will you pay in total interest?
Use PMT=
P
-nt
1- (1 +-7) - ²
to determine the regular payment amount.
You will pay $
more each month.
(Round to the nearest cent as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3dc8e866-e91f-4a92-a0e8-b968402f2cbe%2F733eec29-674b-4248-89c3-a13414c3501d%2Fg4vrkw9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off the balance over
three years. If there are no further purchases charged to the card, you must pay $142.13 each month, and you will pay
a total interest of $1016.68. Assume you decide to pay off the balance over one year rather than three. How much more
must you pay each month and how much less will you pay in total interest?
Use PMT=
P
-nt
1- (1 +-7) - ²
to determine the regular payment amount.
You will pay $
more each month.
(Round to the nearest cent as needed.)
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