Julie has a low credit rating, plus she was furloughed from her job 2 months ago. She has a  new job starting next week and expects a salary to start again in a couple of weeks. Since she  is a little short on money to pay her rent, she decided to borrow $100 from a loan company,  which will charge her only $10 interest if the $110 is paid no more than 1 week after the loan  is made. What are the: (Draw the Cashflow) (a) nominal annual and

Like many college students, Diana applied for and got a credit card that has an annual percentage rate (APR) of 15%. The first thing she did was buy a new DVD player for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15. Assume Diana makes her payment when she sees her statement at the end of each month. If Diana doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the DVD player? Assume that the credit card company compounds interest at the end of each month. O 35.8 months O 37.8 months O 46.3 months O 50.0 months O 32.6 months Diana now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates). She decides to pay twice the minimum monthly payment ($30 per month), instead. How much quicker will she pay off the DVD player? 19.5 months O 26.4 months O 21.1…

Marina had an accident with her car and the repair bill came to $900.  She didn't have any emergency fund money and no extra money in her monthly budget, so she ended up borrowing from a pay-day loan company.  As long as she can pay the loan back at the end of the 30 day period she won't be charged any interest, technically.  However, she did have to pay an $19 processing fee per $100 that she borrowed. If she were to consider the processing fee to represent interest paid in her formula, what would she discover to be the annual interest rate she was charged on her short term loan? [Blank-1] The end of the month has arrived and Marina was only able to save up a portion of the money she owed so far.  This means she will have to delay paying off on the remaining amount.  Besides the delayed payment fee that she is charged, she will now have to pay interest on the remaining amount until it is paid off.  The APR (annual percentage rate) is 46.5%, but the interest is compounded daily. What…

A career counselor decides to make monthly payments of $150 on credit card debt of $3489.64 and discontinue using the credit card. (a). Assuming the annual interest rate is 22.2%, how many months will it take her to repay the debt? Round to the next month. b) How many fewer months would it take to repay the debt if the counselor makes monthly payments of $200. Round to the next month.

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Imagine that a student graduated from college with a degree in education, and they got a full-time job in teaching. This work, which usually consists of teaching five days a week, brings in about $3,200 a month. This individual is living with their parents, but have credit card bills, car payments, student loan payments, car insurance payments, etc. Their total debt is $53,000. If they cannot make all the payments due monthly on their debts, which of the following is the best answer? They can file a Chapter 13 and the trustee in bankruptcy will reduce some of their debt and extend it over a longer time. They cannot file for bankruptcy because their debt is too low. O They cannot file for a Chapter 7 Bankruptcy. They will not qualify for a Chapter 13 Bankruptcy. none of these

Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans are paid in full ahead of schedule. He is using an employee bonus to pay off his​ car, which is on a 41​-month loan. The total interest for the loan is ​$2,310​ and he has 17 more payments to make. How much finance charge will he get credit for if he pays the loan in full​ immediately?

Nick is a full-time college student who plans to graduate in 10 months. He works a limited number of hours each week to pay for car insurance, but he can't work more hours due to his class schedule. He is choosing between two 6-year student loans for $15,000 each. • Loan 1 has a 2.5% annual interest rate with a $224.57 monthly payment. Monthly payments are required immediately. • Loan 2 has monthly payments that are not required for 1 year, but interest accrues during that time. The annual interest is 3.5% compounded monthly. Then $238.56 monthly payments are made for 6 years. The loan Nick chooses will pay his tuition and living expenses, and it will also give him an extra $75 per month. Which loan should Nick choose and why? Nick should choose Loan 1 because the interest rate and the monthly payment are both lower. This means the total interest paid for this loan would be lower than the other one. Nick should choose Loan because no interest accrues during the first year. This means…

Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Madeline is living at home and works in a shoe store, earning a gross income of $960 per month. Her employer deducts a total of $170 for taxes from her monthly pay. Madeline also pays $115 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $170 per month. Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.) With college loan Without college loan Debt Payments-to- Income Ratio

Camila Martinez has several credit cards, on which she is carrying a total current balance of $6,500. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 4 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 6 months. Calculate the fee that Camila would pay to transfer the balance. $   Describe the benefits and drawbacks of balance transfer cards.