In: Finance
You have a $10,000 balance on your credit card, and you want to pay it off in equal semiannual (every 6 months) payments for 5 years. If the card has an 11% APR and compounds monthly, answer the following questions:
a) What is the effective semiannual interest rate?
b) How much do you pay every six months?
c) How much total interest will you pay by the time you've paid off the card?