You have a $7500 balance on your credit card. There’s a 12.5% apr. you have to...

You have a $7500 balance on your credit card. There’s a 12.5% apr. you have to pay 5% of the balance as your minimum payment. What is your balance after 24 months

Expert Solution

Month	Beginning balance	Add: interest @12.5%/12	Bill amount	Less: 5% minimum payment	Ending balance
1	$ 7,500.00	$ 78.13	$ 7,578.13	$ 378.91	$ 7,199.22
2	$ 7,199.22	$ 74.99	$ 7,274.21	$ 363.71	$ 6,910.50
3	$ 6,910.50	$ 71.98	$ 6,982.48	$ 349.12	$ 6,633.36
4	$ 6,633.36	$ 69.10	$ 6,702.46	$ 335.12	$ 6,367.33
5	$ 6,367.33	$ 66.33	$ 6,433.66	$ 321.68	$ 6,111.98
6	$ 6,111.98	$ 63.67	$ 6,175.64	$ 308.78	$ 5,866.86
7	$ 5,866.86	$ 61.11	$ 5,927.98	$ 296.40	$ 5,631.58
8	$ 5,631.58	$ 58.66	$ 5,690.24	$ 284.51	$ 5,405.73
9	$ 5,405.73	$ 56.31	$ 5,462.04	$ 273.10	$ 5,188.93
10	$ 5,188.93	$ 54.05	$ 5,242.99	$ 262.15	$ 4,980.84
11	$ 4,980.84	$ 51.88	$ 5,032.72	$ 251.64	$ 4,781.08
12	$ 4,781.08	$ 49.80	$ 4,830.89	$ 241.54	$ 4,589.34
13	$ 4,589.34	$ 47.81	$ 4,637.15	$ 231.86	$ 4,405.29
14	$ 4,405.29	$ 45.89	$ 4,451.18	$ 222.56	$ 4,228.62
15	$ 4,228.62	$ 44.05	$ 4,272.67	$ 213.63	$ 4,059.04
16	$ 4,059.04	$ 42.28	$ 4,101.32	$ 205.07	$ 3,896.25
17	$ 3,896.25	$ 40.59	$ 3,936.84	$ 196.84	$ 3,740.00
18	$ 3,740.00	$ 38.96	$ 3,778.95	$ 188.95	$ 3,590.01
19	$ 3,590.01	$ 37.40	$ 3,627.40	$ 181.37	$ 3,446.03
20	$ 3,446.03	$ 35.90	$ 3,481.93	$ 174.10	$ 3,307.83
21	$ 3,307.83	$ 34.46	$ 3,342.29	$ 167.11	$ 3,175.17
22	$ 3,175.17	$ 33.07	$ 3,208.25	$ 160.41	$ 3,047.84
23	$ 3,047.84	$ 31.75	$ 3,079.58	$ 153.98	$ 2,925.61
24	$ 2,925.61	$ 30.48	$ 2,956.08	$ 147.80	$ 2,808.28

Balance after 24 months is $2,808.28

Please rate the answer.

ekkarill92 answered 2 months ago

You have a credit card with an APR of 24%. You begin with a balance of...

You have a credit card with an APR of 24%. You begin with a balance of $800. In the first month you make a payment of $400 and you make charges amounting to $350. In the second month you make a payment of $400 and you make new charges of $650. Complete the following table. (Round your answers to the nearest cent.) Previous balance Payments Purchases Finance charge New balance Month 1 $800 $ $ $ $ Month 2 $...

Assume you have a balance of $1400 on a credit card with an APR of 18%,...

Assume you have a balance of $1400 on a credit card with an APR of 18%, or 1.5% per month. You start making monthly payments of $200, but at the same time you charge an additional $ 60 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. The following table shows how you can calculate your monthly balance. Complete and extend the table to show the balance...

You have a $4,000 balance on your credit card. The interest rate on the card is a 17.68% APR, based on monthly compounding.

You have a $4,000 balance on your credit card. The interest rate on the card is a 17.68% APR, based on monthly compounding. Assume that you are not going to add any more charges to the card. If you make monthly (end-of-the-month) payments of $265 each, how long in years will it take you to pay off the card? Input your answer rounded to the nearest 0.1 year (in other words, nearest 10th of a year).

Assume that you have a balance of $5300 on your Discover credit card and that you...

Assume that you have a balance of $5300 on your Discover credit card and that you make no more charges. Assume that Discover charges 21% APR and that each month you make only the minimum payment of 2% of the balance. Find how many months it will take to bring the remaining balance down to $2500. (Round your answer to the nearest whole number.) Answer is NOT 301

You have a $2,100 balance on your 10% credit card. You have lost your job and...

You have a $2,100 balance on your 10% credit card. You have lost your job and been unemployed for 6 months. You have been unable to make any payments on your balance. However, you received a tax refund and want to pay off the credit card. a. How much will you owe on the credit card if you have not made a payment for 6 months? (Round your answers to the nearest cent.) Interest Principal 1 months 2 months 3...

You bought a TV for $900 and charged it to your credit card with 22% APR....

You bought a TV for $900 and charged it to your credit card with 22% APR. You will be diligent in spending monthly payments in an amount that would retire the card balance in exactly 5 years. After 3 years of payments you refinance the remaining balance to a new card with 12% APR. After 3 years you can afford a high monthly payment of $40. A) what is the balance that will get transferred to the new card after...

You have a $10,000 balance on your credit card, and you want to pay it off...

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?

a) You bought a $1200 TV with your new credit card that charges 23% APR. Your...

a) You bought a $1200 TV with your new credit card that charges 23% APR. Your plan is to pay off the card in 5 years. (8 pt.s) a. How much is your monthly payment? b. After two years you plan to have better credit and use a card with a lower rate. What will the balance be at this time? c. If at the two year point, you can then afford to pay $45 per month, how many months...

You have a credit card on which you owe a balance of $3,000. The card carries...

You have a credit card on which you owe a balance of $3,000. The card carries an interest rate of 22% (APR), compounded monthly. You decide to cut up the card, and pay it off by paying the minimum payment due each month, which is a constant $60 (HINT: The amount you owe the credit card company today is a loan).

. You have a $28,000 balance on your credit card. You plan to make monthly payments...

. You have a $28,000 balance on your credit card. You plan to make monthly payments of $550 until the balance is paid off. The interest rate on your credit card is 19.5% p.a., compounded monthly. A letter in the mail informs you that you are approved for a new credit card and balance transfers are subject to a 8.5% p.a., compounded monthly. How many months sooner will you pay off your bill?

Question