Question 7.You have an outstanding credit card balance of $2,000. You decide to stop makingnew charges and pay $375 each month until the balance is paid. If your annualinterest rate is 18%, how many months will it take you to pay off your balance?Your Answer:Answer

Number of months required to pay the amount is calculated using the present value of annuity…

Answered: You have an outstanding credit card…

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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You have a credit card with an APR of 24%. The card requires a minimum monthly payment of 8% of the balance. You have a balance of $8300. You stop charging and make only the minimum monthly payment. What s the balance on the card after forty-five months? (Round your answer to the nearest cent.) $2,251.28 X Submit Answer
7. You just received a $1,000 bill for your credit card, which has an annual interest rate of 18%. Your credit card company uses the previous balance method (i.e. charges interest on the unpaid balance on the first day of the billing period) in order to calculate the interest you owe. Suppose you make a $200 payment tomorrow, and make no new charges to your credit card in the next month. What will be the balance on your next credit card bill (a month from now)? Compute the total return and the annual return for each of the following investments
You owe $1,032.56 on a credit card with an 11.25% APR. The minimum due is $150.00. What is the difference in the interest accrued if you pay the minimum amount due at the beginning of the month versus at the end of the month? Using the credit card information from above, you decide to pay $300.00 instead of $150.00 at the beginning of the month. How much do you save in interest by doubling the amount?
You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? $ each month
You have been given eight months to pay off your gambling debt. You need $2,200 in eight months. How much should you put into your account now if the bank offers a simple interest rate of 11%?
Your credit card has a balance of $4500 and an interest rate of 22%. The credit card requires a minimum payment of 3%. What is your minimum payment? What is your interest for 1 month? What is your new balance?
Only type answer and give answer fast
You have a credit card that has a balance of $6400 at an APR of 13.49%. You plan to pay $300 each month in an effort to clear the debt quickly. How many months will it take you to pay off the balance?
(b) With a constant monthly payment of $40 per month, how many years would it take to pay off the balance? (c) If you paid twice the minimum payment, how long would it take to pay off the card? What is the total amount you would pay? ___years Total of $___ (d) How much money would you save in interest if you paid twice the minimum payment?
You just bought a new TV for $2,559.72 on your credit card; assume no other purchases The APR is 18% and monthly payments. What is your monthly payment if you seek to pay off the balance at the end of 5 years from now? Round to the nearest whole number and use the $ symbol ($98 would be the form of a correct answer)
You charged $3,172 on a credit card. If you pay the minimum payment per month of $46.69, you will pay it off after making 96 payments. How much total interest will you pay?
Suppose your Visa credit card charges an APR of 13.5%, compounded monthly and your current statement shows a balance of $758.50.a) If you make no payments and no additional purchases for one year, what will bethe amount owed at the end of that year?b) How much total interest will be paid?c) What is the nominal rate?d) What is the effective annual rate (EAR)?e) Suppose this credit card company requires a minimum monthly payment of $25.Assuming that no additional purchases are made and also assuming that this minimum amount is paid every month, prepare an amortization schedule for the first three months of payments.

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You have an outstanding credit card balance of $2,000. You decide to stop making new charges and pay $375 each month until the balance is paid. If your annual interest rate is 18%, how many months will it take you to pay off your balance? Your Answer: Answer