Suppose you decide to take the tour now and use a 15% credit card for the purchase. A. How many months will it take to pay off the 6,000 for the tour if you make a fixed payment of 4% of the original balance? B. How much will you pay in interest if you make the fixed payment described in A. C. How many months will take to pay off the 6,000 tour if you make the minimum payment, assuming the minimum is 4% of the outstanding balance? D. How much will you pay in interest if you make only the minimum payment?

Suppose you decide to take the tour now and use a 15% credit card for the purchase. A. How many months will it take to pay off the 6,000 for the tour if you make a fixed payment of 4% of the original balance? B. How much will you pay in interest if you make the fixed payment described in A. C. How many months will take to pay off the 6,000 tour if you make the minimum payment, assuming the minimum is 4% of the outstanding balance? D. How much will you pay in interest if you make only the minimum payment?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Suppose that you decide to borrow 16000 for a new car. You can select one of the following loans each requiring regular monthly payments. Installment loan A three-year loan at 6.3% Installment loan B five -year loan at 6.4% What would be the monthly payments for each loan and total interest for them also? How much will the buyer save in interest?
Suppose you borrow $21,000 from your bank to buy a car. You agree to pay $433.89 per month for 60 months. What is the interest rate (APR) for the loan?
If you are planning to apply for a personal loan and borrow PhP 50,000 and repay the principal and Interest for an agreed length of time of 6 years that is compounded monthly. Calculate the following manually. a. How much Interest would you pay for 6 years for each bank offer? b. How much monthly payment is needed for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 6 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A B с D E 1.3% 1.89% 1.22% 1.5% 1.25%
Suppose you lend $11,500 to a friend at an APR of 10.00%. Your friend will pay you back beginning next month with 60 monthly installments. You can reinvest the payments you receive in your money market account at an APR of 1.10%, calculated monthly. a. How much will your friend pay you each month? ______________ b. How much will you have in your account at the end of 60 months? (to nearest $___________________ c. What is your effective annual return (EAR), _._ _%?______________
Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $989 per month, and the total finance charge is $9,504. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $). (Round your answer to the nearest cent.) Need Help? Read It Watch It Master It
suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans, each requiring regular monthly payments. Installment loan A: 3-year loan at 5.9% Installment loan B: 5-year loan at 6.4% a.- find the monthly payments and the total interest for loan A b.-find the monthly payments and the total interest for loan B c.- compare the two loans. which is more economical?
4. Consider a credit card with a balance of $7000. You wish to pay off the credit card, which has an APR of 17.99%, within 1 year. Calculate the following. Round your answer to the nearest cent, if necessary. a. Find the number of months you will need to pay the credit card if you pay $585 per month. b. Will you meet your goal and have the credit card paid in one year?
You want to buy a car and therefore you need $10,000. You can borrow from a bank today for 6 years. However, the bank requires you to make down payment of 10% of the amount you want to borrow and will lend you the rest. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments then what will be your approximate monthly installment on the amount that you borrow? Group of answer choices $170.43 $154.31 $171.45 $160.31
Suppose you owe $15,000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by B = 15,000(1.02 ✕ 0.95)t dollars. How many payments will you have to make to get the balance below $200? (Enter the smallest such number of payments as an integer.)
Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,050 one week later (or lose a finger or two). a. What is the effective annual rate on the loan? b.
You need a home loan of $95,000 after your down payment. How much will your monthly house payment be if the bank charges 6.25% APR for a loan of 25 years? (Simplify your answer completely. Round your answer to the nearest cent.)
Consider a credit card with a balance of $7000 and an APR of 12.5%. If you want to make monthly payments in order to pay off the balance in 11 year, what is the total amount you will pay? Round your answer to the nearest cent, if necessary.

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