
Concept explainers
a. 39–44. Use a spreadsheet to complete the first twelve lines of an amortization schedule for each loan in Exercises 11–16.
Credit cards. Joanna uses her credit card to finance a $500 purchase. Her card charges an annual interest rate of 22.75%, compounded monthly, and assumes a 10-yr term. Assume that Joanna makes no further purchases on her credit card.
a. Find Joanna’s monthly credit card payment.
b. Assume that Joanna makes every payment for the life of the loan. Find her total payments.
c. How much interest does Joanna pay over the life of the loan?

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