We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum payment is $10 or 2.5% of the balance remaining to be paid, whichever is higher. How long will it take to repay the debt assuming that the minimum payment is always made, and how much will we have paid in total? If we borrow the same $2,100 at the same annual interest rate of 18% but repay it as an amortized loan with a monthly payment of $55, how long will it take to repay the debt, and how much will we have paid in total?.
We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum payment is $10 or 2.5% of the balance remaining to be paid, whichever is higher. How long will it take to repay the debt assuming that the minimum payment is always made, and how much will we have paid in total? If we borrow the same $2,100 at the same annual interest rate of 18% but repay it as an amortized loan with a monthly payment of $55, how long will it take to repay the debt, and how much will we have paid in total?.
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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We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum payment is $10 or 2.5% of the balance remaining to be paid, whichever is higher. How long will it take to repay the debt assuming that the minimum payment is always made, and how much will we have paid in total? If we borrow the same $2,100 at the same annual interest rate of 18% but repay it as an amortized loan with a monthly payment of $55, how long will it take to repay the debt, and how much will we have paid in total?.
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