Question
In: Economics
Suppose you owe $1200 on your credit card. The annual percentage rate (APR) is 18%, compounded...
Suppose you owe $1200 on your credit card. The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $21.82. a. If you make only this minimum payment, how long will it take for you to repay the $1200 balance (assuming no more charges are made)? b. If you make the minimum payment plus $10.01 extra each month (for a total of $31.83), how long will it take to repay the $1200 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b).
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
"You currently owe $2480 on your credit card, which calculates interest based on 18.23% APR, compounded...
"You currently owe $2480 on your credit card, which calculates
interest based on 18.23% APR, compounded daily. You make quarterly
payments of $724 at the end of every quarter, and you make your
first payment exactly one quarter from now. How many quarters until
you pay off your credit card debt? Assume 91 days in each quarter.
Express your answer as an integer (number of quarters)."
The annual interest rate on a credit card is 18% with interest compounded monthly. If a...
The annual interest rate on a credit card is 18% with interest
compounded monthly. If a payment of $100 is made at the end of each
month, how many months will it take to pay off an unpaid balance of
$2,583.56 (assuming no additional purchases are made)?
A bank states that it charges a 20% APR (or annual percentage rate) on credit card...
A bank states that it charges a 20% APR (or annual percentage
rate) on credit card balances where the cardholder has been late
making a payment. However, the bank compounds monthly. What EFF% is
the bank charging?
Group of answer choices
22.45%
21.94%
21.62%
23.85%
22.77%
You owe $10,000 on a credit card with an interest rate of 15%, which is compounded...
You owe $10,000 on a credit card with an interest rate of 15%,
which is compounded monthly. If you make payments of $1,000 per
month, how many months will it take you to pay off your debt?
(Enter the answer to 2 decimal places)
Mary owes an amount of $1,460 on her credit card. The annual percentage rate (APR) is...
Mary owes an amount of $1,460 on her credit card. The
annual percentage rate (APR) is 3%, compounded monthly. Her minimum
monthly payment is $20.
a. If she makes only this minimum payment, how long will
it take to repay the card balance (assuming no more charges are
made)?
b. If she makes the minimum payment plus $10 extra each
month (for a total of $30), how long will it take to repay the card
balance?
You owe 2000 dollars on your credit card which has an interest rate of 18% per...
You owe 2000 dollars on your credit card which has an interest
rate of 18% per year compounded monthly. If you plan to pay it off
in 4 years, what are your monthly payments?
2 decimals
What are the total payments?
Round to nearest whole dollar.
How much total interest is paid?
Nearest whole dollar.
What is the unpaid balance after 1 year?
Round to nearest whole dollar.
17. Visa Card and other credit card issuers must by law print the Annual Percentage Rate(APR)...
17. Visa Card and other credit card issuers must by law print
the Annual Percentage Rate(APR) on their monthly statements. If the
APR is stated to be 24.00%, with interest paid monthly, what is the
card's EAR%?
A. 18.58%.
B. 19.56%.
C. 25.44%.
D. 21.57%.
E. None of the above.
18. You estimate that you will need about $80,000 to send your
child to college in eight years. You have about $35,000 now. At
what rate will you just reach...
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...
American Express and other credit card issuers must by law print the Annual Percentage Rate (APR)...
American Express and other credit card issuers must by law print
the Annual Percentage Rate (APR) on their monthly statements. If
the APR is stated to be 14.25%, with interest paid monthly, what is
the card's EFF%?
You bought a $1200 TV with your new credit card that charges 23% APR. Your plan is...
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.
How much is your monthly payment?
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?
If at the two year point, you can then afford to pay $45 per
month, how many months will it take you to pay off the...
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