compounded 12 times a year. If the card holder wants to pay off will the card holder need to pay? Use this information to comple 1) If the card holder is a low-risk customer, and the credit card annual rate of interest compounded 12 times a year. Compu i. Monthly payment: | ii. Total amount of money the card holder will pay: iii. Total interest amount the credit card company will earn:
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?A bank charges you, the credit card holder, 13.24% compounding monthly. Imagine that you have accumulated debt in an amount of $4,000. Your credit card statement shows a minimum monthly payment of $20.00. Assuming you wise up and realize that you better pay off your debt before charging on your card again, how long would it take to pay off the debt completely if you were to make the minimum payments? How long would it take if you were to make a monthly payment of $50.00?Suppose I have a balance of $4500 on my Bank of America credit card. Assume the interest rate on my card is 12.95%. If I am willing to commit to making monthly payments of $100, then how long will it take for me to pay off my credit card?
- Suppose that on January 1 you have a balance of $6,000 on the following credit cards, which you want to pay off in the given amount of time. Assume that you make no additional charges to the card after January 1. The credit card APR is 24%, and you want to pay off the balance in 1 year. Round to the nearest cent The credit card APR is 25%, and you want to pay off the balance in 2 years. $ Round to the nearest cent The credit card APR is 26%, and you want to pay off the balance in 3 years. Round to the nearest centUse PMT= to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of $4800 and an annual interest rate of 19%. With no further purchases charged to the card and the balance being paid off over five years, the monthly payment is $125, and the total interest paid is $2700. You can get a bank loan at 11.5% with a term of six years. Complete parts (a) and (b) below. a. How much will you pay each month? How does this compare with the credit-card payment each month? Select the correct choice below and fill in the answer boxes to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) This is $ O A. The monthly payments for the bank loan are approximately $ monthly credit-card payments. O B. The monthly payments for the bank loan are approximately $ monthly credit-card payments. This is $ more than the less than theA credit card company wants your business. If you accept their offer and use their card, they willdeposit 1% of your monetary transactions into a savings account that will earn a guaranteed 5% peryear. If your annual transactions total an average of $20,000, how much will you have in this savingsplan after 15 years.
- 1. The bank officer is convincing a customer who is looking for a car loan. Compute the price the bank expects to receive for the loan if annual interest rate is 8%, the car payment is $350 per month, and the loan term is six years. You may convert the annual interest rate into monthly interest rate using the formula [monthly interest rate(im) = (1+i)1/12 – 1, where i is the annual interest rate].Use PMT = to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of - nt 1- + n $4500 and an annual interest rate of 18%. With no further purchases charged to the card and the balance being paid off over four years, the monthly payment is $132, and the total interest paid is $1836. You can get a bank loan at 10.5% with a term of five years. Complete parts (a) and (b) below. a. How much will you pay each month? How does this compare with the credit-card payment each month? Select the correct choice below and fill in the answer boxes to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) O A. The monthly payments for the bank loan are approximately $ This is $ more than the monthly credit-card payments. O B. The monthly payments for the bank loan are approximately $ This is $ less than the monthly credit-card payments. b. How much total interest will you pay? How does this compare with…Today the average undergraduate student is responsible for paying off a $3,500 balance on his/her credit card. Suppose the monthly interest rate is 1.75% (21% APR). How many months will it take to repay the $3,500 balance, assuming monthly payments of $100 are made and no additional expenses are charged to the credit card? [What is the APR on your personal credit card(s)?]
- Calculate the APR of a loan for $10,025, including loan fees of $310, at 11% for 6 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.) APR If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehne is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 6% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun $1,158 $ 85 cr. 142 250 cr. 315 55 Answer is not complete. Amount owed Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by formula. (Do not round intermediate calculations.…You have credit card debt of $25,000 that has an APR (monthly compounding) of 18%. Each month you pay the minimum monthly payment. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 9%. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card, and borrow additional money as well. How much can you borrow today on the new card without changing the minimum monthly payment you will be required to pay? (Note: Be careful not to round any intermediate steps less than six decimal places.) ..... You can borrow $ on the new card without changing the minimum monthly payment you will be required to pay. (Round to the nearest dollar.)Recently, you made multiple large purchases on your credit card totaling $10,450. The interest rate on your credit card is 19.2% per year, compounded monthly, and your statement says your minimum payment is $310 per month. a. How many minimum payments will you need to make to pay off your purchases, assuming you cut up your credit card and do not make any additional purchases? You will need 4 minimum payments. b. How much total interest will you pay by making the minimum monthly payment? Total interest =$