Question

Assume that you have a balance of $3000 on your MasterCard and that you make no more charges. Assume that MasterCard charges 12% APR and that each month you make only the minimum payment of 5% of the balance.

Find how many months it will take to bring the remaining balance down to $400. (Round your answer to the nearest whole number.)

Please do NOT use Excel

Answer 1

ANSWER: 48 Months

Interest in each month = opening balance * (APR / 12)

We divide by 12 as we are calculating interest for 1 month

= 3000*12/100*1/12=30

Payment in each month = (opening balance + interest for the month) * 5%

closing balance of each month = opening balance + interest - payment

For 1st Month=3000*12/100*1/12=30

=3000+30-5/100

=2878.50

It goes till 48 months to reach the balance down to 400.

48th Month= 429.05*12/100*1/12

=429.05+4.29-21.67

=411.68

Months	Opening Bal	Interest	Total	Mini.Payment	Closing Balance
1	3,000.00	30.00	3,030.00	151.50	2,878.50
2	2,878.50	28.79	2,907.29	145.36	2,761.92
3	2,761.92	27.62	2,789.54	139.48	2,650.06
4	2,650.06	26.50	2,676.56	133.83	2,542.74
5	2,542.74	25.43	2,568.16	128.41	2,439.75
6	2,439.75	24.40	2,464.15	123.21	2,340.94
7	2,340.94	23.41	2,364.35	118.22	2,246.14
8	2,246.14	22.46	2,268.60	113.43	2,155.17
9	2,155.17	21.55	2,176.72	108.84	2,067.88
10	2,067.88	20.68	2,088.56	104.43	1,984.13
11	1,984.13	19.84	2,003.98	100.20	1,903.78
12	1,903.78	19.04	1,922.81	96.14	1,826.67
13	1,826.68	18.27	1,844.94	92.25	1,752.70
14	1,752.70	17.53	1,770.22	88.51	1,681.71
15	1,681.71	16.82	1,698.53	84.93	1,613.60
16	1,613.60	16.14	1,629.74	81.49	1,548.25
17	1,548.25	15.48	1,563.73	78.19	1,485.55
18	1,485.55	14.86	1,500.40	75.02	1,425.38
19	1,425.38	14.25	1,439.64	71.98	1,367.65
20	1,367.66	13.68	1,381.33	69.07	1,312.26
21	1,312.27	13.12	1,325.39	66.27	1,259.12
22	1,259.12	12.59	1,271.71	63.59	1,208.12
23	1,208.12	12.08	1,220.21	61.01	1,159.19
24	1,159.20	11.59	1,170.79	58.54	1,112.25
25	1,112.25	11.12	1,123.37	56.17	1,067.20
26	1,067.20	10.67	1,077.87	53.89	1,023.98
27	1,023.98	10.24	1,034.22	51.71	982.51
28	982.51	9.83	992.33	49.62	942.72
29	942.72	9.43	952.14	47.61	904.54
30	904.54	9.05	913.58	45.68	867.90
31	867.90	8.68	876.58	43.83	832.75
32	832.75	8.33	841.08	42.05	799.03
33	799.03	7.99	807.02	40.35	766.67
34	766.67	7.67	774.33	38.72	735.62
35	735.62	jeff jeffy Next > < Previous Related Solutions Assume that you have a balance of $3200 on your MasterCard and that you make no... Assume that you have a balance of $3200 on your MasterCard and that you make no more charges. Assume that MasterCard charges 12% APR and that each month you make only the minimum payment of 6% of the balance. What will the balance be after 24 months? (Round your answer to the nearest cent.) Assume that you have a balance of $9000 on your MasterCard and that you make no... Assume that you have a balance of $9000 on your MasterCard and that you make no more charges. Assume that MasterCard charges 12% APR and that each month you make only the minimum payment of 5% of the balance. Find how many months it will take to bring the remaining balance down to $400. (Round your answer to the nearest whole number.) Assume that you have a $22,500 balance on your credit card. You plan to make monthly... Assume that you have a $22,500 balance on your credit card. You plan to make monthly payments of $450 until the balance is paid off. The interest rate on your credit card is 17.5% 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 9.5% p.a., compounded monthly. How many months sooner will you pay off your bill? 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 $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? Assume you have a saving account that pays 4% APR. If you have a beginning balance... Assume you have a saving account that pays 4% APR. If you have a beginning balance of$6000, How much do you need to save on a monthly basis in a saving account (add to your saving account) to have a down payment of $20000 for a house in 5 years i need someone to find the answer for this question A MasterCard statement shows a balance... i need someone to find the answer for this question A MasterCard statement shows a balance of $510 at 13.5% compounded monthly. What monthly payment will pay off this debt in 1 year 10 months? (Round your answer to the nearest cent.) In a certain city, 30% of the families have a MasterCard, 20% have an American Express... In a certain city, 30% of the families have a MasterCard, 20% have an American Express card, and 25% have a Visa card. Eight percent of the families have both a MasterCard and an American Express card. Twelve percent have both a Visa card and a MasterCard. Six percent have both an American Express card and a Visa card. 31. Is possession of a Visa card independent of possession of a MasterCard? Why or why not? No, because P (M... Make me a millionaire. Assume that you are a financial advisor. I have come to you... Make me a millionaire. Assume that you are a financial advisor. I have come to you because I want to develop a plan for retiring early. I am currently 24 years old and I want to retire by age 55. That gives me 31 years to build wealth. I have just graduated from college and obtained my first job as an urban planner with a local city, earning $32,000 per year. People in this field usually top out at about... 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... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions 23- Celsius Corp. is conducting a capital budgeting analysis to decide whether to invest in a... Using energy level diagrams, predict the relative stability of a Br2 molecule as well as the... A 0.0038 kg leaf falls 16.8 m to the ground, where it lands with a speed... Problem 1: In the figure to the right, m1=20.0kg and α=53.1o . The coefficient of kinetic... A palindrome is a string whose reversal is identical to the string. For example, 110010011 is... Explain how the shape of the load duration curve for a particular system affects the selection... For physics discussion post. Please TYPE the response as I struggle with reading written information. Explain... ADVERTISEMENT About @ 2020 WizEdu