Concept explainers
Paying Off a Credit Card Suppose you owe $15, 000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by
How many payments will you have to make to get the balance below $100?
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- Akomiah deposits GH¢1,000 into his bank account. The bank credits interest at nominal annual rate j,convertible semi annually, for the first seven years and nominal annual rate 2j,convertible quarterly, for all years thereafter. The accumulated value of the account at the end of 5years is 2x. If the accumulated value of the account at the end of 10.5years is GH¢1,980,fund the value of x.arrow_forwardThe asking price for a car is $21600. You decide to put down $2000 and finance the rest of the amount. The terms of the financing are as follows: 1.8% annually for 6 years. The formula for the monthly payment is given by P.i A = 1 1- (1+ i)n where P is the amount to finance, i is the monthly interest (the annual interest over 12), and n is the number of months (not years). Use this formula to answer the following questions: The amount to finance: The monthly payment:arrow_forwardDavid posted $1500 in a savings account and an annual interest rate of 3% compound monthly. At the same time Jana deposited $1400 in a savings account at an annual rate of 4% compounded monthly. After how many months will the balance and Jana‘s savings account first be greater than the balance in David’s savings account? A. 8 B. 12 C. 60 D. 84arrow_forward
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