Question
In: Finance
A Bigbank Visa card charges interest at a nominal rate of 24% per year, compounded daily....
A Bigbank Visa card charges interest at a nominal rate of 24%
per year,
compounded daily. If a person has an outstanding balance of
$500 on this card,
(i) What will be the balance after 1 week, 30 days, 120 days
and 365 days, if he makes no
payments in the interim?
(ii) What is the growth factor over 1 day, 1 week, 30 days and
1 year of his debt?
(iii) What is the APR of this card?
(iv) How long before the outstanding balance becomes
$1,000?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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