Sh31 17. Problem 5.37 (Paying off Credit Cards)eBookSimon recently received a credit card with a 12% nominal interest rate. With the card, he purchased an Apple iPhone 11 for $670. The minimum payment on the card is only $20 permontha. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediatecalculations. Round your answer to the nearest whole number.month(s)b. If Simon makes monthly payments of $70, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to thenearest whole number.month(s)c. How much more in total payments will Simon make under the $20-a-month plan than under the $70-a-month plan? Do not round intermediate calculations. Round youranswer to the nearest cent$Save & ContinueContinue without saving

loan amount = monthly payment * [ (1- (1/ (1+monthly rate)tenure)) / monthly rate ] Principal loan…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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K Suppose that on January 1 you have a balance of $2500 on a credit card whose APR is 13%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. The total paid since January 1 is $ (Use the answer from part (a) to find this answer. Round to the nearest cent as needed.) c. The percentage of the total paid that is interest is %. (Use the answer from part (b) to find this answer. Round to one decimal place as needed.)
K Suppose that on January 1 you have a balance of $2800 on a credit card whose APR is 17%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1, a Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c What percentage of your total payment from part (b) is interest? a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed)
You owe $12,500 on your credit card. Horrified, you decide to make no more purchases and make payment of $500 per month. How long will it take you to pay off your credit card if it charges interest at J12=18% and your first payment is today. You may give your answer in months. Your Answer: Answer
No Plagirism Please! Note: Enter your answer and show all the steps that you use to solve this problem in the space provided You have a credit card with a balance of $1,367 90 at a 95% APR. You pay $400.00 each month on the due date until the card is paid off. How many months does it take to pay off the card, and what is the total amount paid including interest? Be sure to include in your response the answer to the original question the mathematical steps for solving the problem demonstrating mathematical reasoning
1 Need help asap Currently, your credit card has a balance of $14,000. The credit card has an effective monthly interest rate of 0.95%. Assuming you make no additional purchases with your credit card, how many monthly payments in the amount of $2,200 until your balance is paid off?
eBook Simon recently received a credit card with a 17% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $300.00. The minimum payment on the card is only $20 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) b. If Simon makes monthly payments of $60, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) c. How much more in total payments will Simon make under the $20-a-month plan than under the $60-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent. $
11. Suppose you have a balance of $5400 on your credit card, which charges an APR of 18%. If you want to pay off the balance in 18 months, how much should you pay each month? What is the total amount of interest you will end up paying? Assume that you charge no additional expenses to the card. 5400 012
II. Solve the following problems involving credit cards. Round your answers to the nearest hundredth. 12. If the APR on a credit card is 22.2%, what is the monthly interest rate? 13. The average daily balance for Dave's last credit card statement was $1,213.44, and he had to pay a finance charge. The APR is 20.4%. a) What is the monthly interest rate? b) What is the finance charge for the month?
Suppose Olivia has $7,020 in credit card debt on the B credit card which has annual interest rate of 18.1%. Olivia is considering transferring her debt to the LA credit card that offers 0% interest for 18 months. (a) If Olivia makes a payment of $390 per month on the VB credit card, what will her balance be at the end of 18 months? Assume that no additional charges are made to the card. (Suggestion: You are trying to find the future value of a debt that has a present value of $7,020. Use the formula for the future value of an ordinary annuity. Round your answer to the nearest cent.) (b) If Olivia makes a payment of $390 per month on the LA credit card, what will her balance be at the end of 18 months? Assume that no additional charges are made to the card. (Suggestion: None of the payment goes to interest on the debt. Round your answer to the nearest cent.) (c) How much lower is the balance due after 18 months on the LA credit card? Note: Some credit card companies may charge a…
Simon recently received a credit card with a 214. nominal interest rate. With the card, he purchased on Apple iPhone 11 for 8130, The Mimmum payment on the card is only $20 per WW month a) It Simon makes the minimum monthly payment and makes no other changes, how many months will it be before he pays off the card? Rand your answer to the nearest whole number months b) If Simon makes monthly payments of $65, how mony months will it be before he pays off the debt? Round your answer to the nearest whole number. months artw () How much more in total payments will Simon make under the $20 a month plan than the under the $65 a month plan?
5. Suppose Tom has a credit card debt of $4000 which has an annual rate of interest 18%. The minimum payment for the month of June is $60. Suppose Tom pays back only the minimum required payment. What is the balance Tom has to pay back at the end of June? (Use the Open-End Credit Method)
Give typing answer with explanation and conclusion You have a balance of $9700 for your tuition on your American Express credit card. Assume that you take no more charges on the card. Also assume that American Express charges 13% APR and that each month you make only the minimum payment of 4% of the balance. What will the balance be after 32 months? At what balance do you begin making payments of $60.00 or less? How long will it take to get the balance below $50?

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