PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337117005
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Question
Chapter 6, Problem 6FPE
Summary Introduction
To calculate: The minimum amount to be paid by Person SC on the overdraft protection line.
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Angela has a Macy’s credit card. The card has a balance of $2088.74 with an APR of 28.99%. Macy’s expects the minimum payment to be 3.9% of the balance. What is Angela’s minimum payment? How long will it take Angela to pay off her Macy’s credit card? How much interest will Angela pay if she only pays the minimum payment? Show steps.
Problem:
Answer the following questions completely. Show all computations. Round off only the final answers to two decimal places.
On June 26, 2019, Sarah obtained a loan of P150,000 from a local businessman. The interest rate on the loan was 7.75% and it is to be paid on November 15, 2020.
What is the exact time from June 26, 2019, to November 15, 2020?
What is the approximate time from June 26, 2019, to November 15, 2020?
What is the Ordinary simple interest using exact time?
What is the Ordinary simple interest using approximate time?
What is the Exact simple interest using exact time?
What is the Exact simple interest using approximate time?
If Sarah was given the option to choose the type of interest to use, which should she had chosen? Explain why in one sentence.
On April 5, 2019, Janeen Camoct took out an 8.5% loan for $20,000. The loan is due March 9, 2020. Use ordinary interest to calculate the interest. What total amount will Janeen pay on March 9, 2020? (Ignore leap year.)
Required:
What are the number of days between the two dates listed below?
Note: Use the DATEDIF or DAYS function to calculate the number of days.
4/5/2019
3/9/2020
What is your principal?
Note: Answer should be entered as a numeric value and not a formula.
What is your rate?
Note: Answer should be entered as a numeric value and not a formula.
What is the time?
What total amount will Janeen pay on March 9, 2020?
Chapter 6 Solutions
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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Similar questions
- Using overdraft protection line. Grace Wang has an overdraft protection line. Assume that her October 2020 statement showed a latest (new) balance of $862. If the line had a minimum monthly payment requirement of 5 percent of the latest balance (rounded to the nearest $5 figure), what would be the minimum amount that she’d have to pay on her overdraft protection line?arrow_forwardProblem:Answer the following questions completely. Show all computations. Round off only the final answers to two decimal places.On June 26, 2019, Naomi obtained a loan of P150,000 from a local businessman. The interest rate on the loan was 7.75% and it is to be paid on November 15, 2020.1. What is the exact time from June 26, 2019, to November 15, 2020? 2. What is the approximate time from June 26, 2019, to November 15, 2020? 3. What is the Ordinary simple interest using exact time? 4. What is the Ordinary simple interest using approximate time? 5. What is the Exact simple interest using exact time? 6. What is the Exact simple interest using approximate time? 7. If Naomi was given the option to choose the type of interest to use, which should she had chosen? Explain why in one sentence.arrow_forwardLiam needs to calculate the monthly payment for a loan to purchase the Charles Street property. Calculate the payment as follows: a) For the nper argument, use the Term_in_Months (cell D5) to specify the number of periods. b)For the pv argument, use the Loan_Amount (cell B8) to include the present value. c)Insert a negative sign (-) after the equal sign in the formula to display the result as a positive amount.arrow_forward
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