You have a balance of $12,000 for your tuition on your American Express credit card. Assume that you make no more charges on the card. Also assume that All that each month you make only the minimum payment of 5% of the balance. What percentage of the previous balance is paid off each month? Round the percentage to two decimal places. (Hint: Construct a formula for the balance after t minimum payments and simplify the decay factor in order to answer this question.) 3.34 X% Submit Answer
You have a balance of $12,000 for your tuition on your American Express credit card. Assume that you make no more charges on the card. Also assume that All that each month you make only the minimum payment of 5% of the balance. What percentage of the previous balance is paid off each month? Round the percentage to two decimal places. (Hint: Construct a formula for the balance after t minimum payments and simplify the decay factor in order to answer this question.) 3.34 X% Submit Answer
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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