Alice has a balance of $19.000 on her credit card. The card carries a 22.00% annual rate of interest. The bank requires a minimum payment of 4.00% of the outstanding balance, but no less than $50.00 each month. If Alice wants to pay off the balance in 9 years, how much EXTRA must she pay every month in addition to the required minimum payment? Round your answer to the NEAREST dollar. Do NOT use a dollar sign.

Alice has a balance of $19.000 on her credit card. The card carries a 22.00% annual rate of interest. The bank requires a minimum payment of 4.00% of the outstanding balance, but no less than $50.00 each month. If Alice wants to pay off the balance in 9 years, how much EXTRA must she pay every month in addition to the required minimum payment? Round your answer to the NEAREST dollar. Do NOT use a dollar sign.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Similar questions

Michela Navarro has $3,956.71 in credit card debt. If she makes a monthly payment of $125 (and makes no additional charges on the account), how many months will it take to repay the debt if the annual interest rate on the credit card is 22.1%? Round up to the nearest month.
Melissa wants to check the accuracy of the finance charge on her promissory note. She has a $6,000, four-year loan at an APR of 3.11%. Round to the nearest cent. a. What is her monthly payment?
1.Brooke’s credit card has an annual interest rate of 21% on her unpaid balance, which averages $900. (a) Find the monthly interest payment in dollars. Assume that monthly interest rates are 1/12 of the annual interest rates. (b) Brooke wants to pay off her credit card debt with payments of $100 per month until it is paidoff. Complete the shaded entries in the chart below. (When her balance is below $100, her final payment will be the balance due.) Month Intrest Payment Balance 0 $900.00 1 900 x 0.21/12=$15.75 $100.00 900+15.75-100=$815.75 2 815.75 x 0.21/12=$14.28 $100.00 815.75+14.28-100=$730.03 3 $100.00 4 $100.00 5 $100.00 6 $100.00 7 $100.00 8 $100.00 9 $100.00 10 Totals
Suppose I have a balance of $4500 on my Bank of America credit card. Assume the interest rate on my card is 12.95%. If I am willing to commit to making monthly payments of $100, then how long will it take for me to pay off my credit card?
Jessica charges $8500 to a credit card with a 15.54% interest rate. (a) If Jessica makes a payment of $185.56 each month, how many payments will it take to retire the balance? (b) If Jessica doubles the payment to $371.12, how many payments will it take to retire the balance? (c) If Jessica pays $371.12 each month instead of $185.56, how much will she save in interest charges? (a) It will take payments to pay off the debt. (Round up to the nearest integer as needed.)
You have a balance of $5,000 on your credit card. The interest rate is 15% per year. You want to make equal monthly payment for the next 4 years to completely pay off the balance. Assume no other purchases or payments other than your calculated plan. What must be the amount of your monthly payment? Round to the nearest $ and use the $ symbol.
Lauren plans to deposit $4000 into a bank account at the beginning of next month and $200/month into the same account at the end of that month and at the end of each subsequent month for the next 5 yr. If her bank pays interest at a rate of 6%/year compounded monthly, how much will Lauren have in her account at the end of 5 yr? (Assume she makes no withdrawals during the 5-yr period. Round your answer to the nearest cent.)
Imelda opens a savings account with $12,000, which pays an annual interest rate of 7.8%. If she reinvests the generated interest every month and also deposits $2,300 each month, how much will be in the account after 2 years? The interest is reinvested on the same day as the $2,300 deposit. Otions: 69177.89 71052.15 73548.61 70524.79
Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Emma deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 9%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 11 years? O $145.00 O $1,290.21 O $995.00 O $549.05 Now, assume that Emma's savings institution modifies the terms of her account and agrees to pay 9% in compound interest on her $500 balance. All other things being equal, how much money will Emma have in her account in 11 years? O $1,290.21 O $116.12 O $545.00 O $995.00 Suppose Emma had deposited another $500 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 9% but with quarterly compounding. Keeping everything else constant, how much money will Emma have in her…
Brandon has reached his credit card limit of $5000.00. Using an online calculator, Brandon determined that if he pays $180.00 per month, it will take him 39 months to pay off the credit card. Which of the following represents the total interest Brandon will pay when his debt is paid off? A $1,700.40 B $2,020.00 C $1,100.00 D $858.10 Need ASAP please
Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed Interest rates are used throughout this question. Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.2%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 5 years? $206.60 $1,927.88 $1,415.34 $1,833.00
Sara calculates that if she makes a deposit of $8 each month at an APR of 3.6%, then at the end of two years she'll have $194. Lee says that the correct amount is $215. The Regular Deposits Rule of Thumb should be helpful here. What was the total amount deposited (ignoring interest earned)? $ What would the balance be if the total amount were deposited at the beginning of the two years? (Assume no additional deposits are made and the money compounds monthly at an APR of 3.6%)