A new employee charged $2080 on his credit card to relocate for his first job. After noticing that the interest rate for his balance was 24% compounded monthly, he stopped charging on that account. He wishes to pay off his balance in 3 years using automatic payments sent at the end of each month. a. What monthly payment must he make to pay off the account at the end of 3 years? b. How much total interest will he have paid? m a. What monthly payment must he make to pay off the account at the end of 3 years? (Round to the nearest cent as needed.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
Problem 79P
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A new employee charged $2080 on his credit card to relocate for his first job. After noticing that the interest rate for
his balance was 24% compounded monthly, he stopped charging on that account. He wishes to pay off his balance in
3 years using automatic payments sent at the end of each month.
a. What monthly payment must he make to pay off the account at the end of 3 years?
b. How much total interest will he have paid?
a. What monthly payment must he make to pay off the account at the end of 3 years?
$(Round to the nearest cent as needed.)
b. How much total interest will he have paid?
(Round to the nearest cent as needed.)
Transcribed Image Text:K A new employee charged $2080 on his credit card to relocate for his first job. After noticing that the interest rate for his balance was 24% compounded monthly, he stopped charging on that account. He wishes to pay off his balance in 3 years using automatic payments sent at the end of each month. a. What monthly payment must he make to pay off the account at the end of 3 years? b. How much total interest will he have paid? a. What monthly payment must he make to pay off the account at the end of 3 years? $(Round to the nearest cent as needed.) b. How much total interest will he have paid? (Round to the nearest cent as needed.)
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