Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Can you complete parts a through d for me?
![A person borrows $2,850 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month.
(a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.)
[______] %
(b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let \( B_n \) be the balance owed on the card after n months. Find an explicit formula for \( B_n \).
[______]
(c) How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.)
[______] months
(d) What is the total amount of money the person will have paid for the loan?
$[______]](https://content.bartleby.com/qna-images/question/b8d898d5-ac2f-4f11-9121-17e7cafa5348/139db522-0333-4926-bc37-fec4016aaa60/iwzgzmd_processed.png)
Transcribed Image Text:A person borrows $2,850 on a bank credit card at a nominal rate of 18% per year, which is actually charged at a rate of 1.5% per month.
(a) What is the annual percentage yield (APY) for the card? (Round your answer to one decimal place.)
[______] %
(b) Assume that the person does not place any additional charges on the card and pays the bank $150 each month to pay off the loan. Let \( B_n \) be the balance owed on the card after n months. Find an explicit formula for \( B_n \).
[______]
(c) How many months will be required to pay off the debt? (Round your answer up to the nearest whole number.)
[______] months
(d) What is the total amount of money the person will have paid for the loan?
$[______]
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