Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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charges a 18% interest rate. If you want to
pay off the credit card in 5 years, how much
will you need to pay each month (assuming
you don't charge anything new to the card)?
each month
$"
Transcribed Image Text:You have $2,000 on a credit card that
charges a 18% interest rate. If you want to
pay off the credit card in 5 years, how much
will you need to pay each month (assuming
you don't charge anything new to the card)?
each month
$
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?arrow_forwardUse the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?arrow_forwardYou put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.arrow_forward
- Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?arrow_forwardYou have $4,500 on a credit card that charges a 16% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? $ each montharrow_forwardYou have $5,000 on a credit card that charges 19% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month ( assuming you don't charge anything new to the card)?arrow_forward
- You have $4 000 on a credit card that charges a 18% interest rate.If you want to pay off the credit card in 3 years how much will you need to pay each month (assuming you don't charge anything new to the card)?arrow_forwardYou have $2,000 on a credit card that charges 18% interest rate if you want to pay off the credit card in 4 years. How much will you need to pay each month?arrow_forwardYou have $4,500 on a credit card that charges a 15% interest rate. If you want to pay off the card in 5 years how much will you need to pay each month?arrow_forward
- Need helparrow_forwardHow many years will it take for you to be debt free ??? General accountingarrow_forwardYou have a balance of $5,000 on your credit card. The interest rate is 15% per year. You want to make equal monthly payment for the next 4 years to completely pay off the balance. Assume no other purchases or payments other than your calculated plan. What must be the amount of your monthly payment? Round to the nearest $ and use the $ symbol.arrow_forward
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