You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .4 percent per year, compounded monthly for the first six months, increasing thereafter to 17.4 percent compounded monthly. Assume you transfer the $6,400 balance from your existing credit card and make no subsequent payments. How much interest will you owe at the end of the first year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of .4 percent per year, compounded monthly for the first six months, increasing thereafter to 17.4 percent compounded monthly. Assume you transfer the $6,400 balance from your existing credit card and make no subsequent payments. How much interest will you owe at the end of the first year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 4FPE

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QUESTION FIVEYou receive a credit card application from XYZ Banks Savings and Loan offering an introductory rate of 2.5 percent per year, compounded monthly for the first six months, increasing thereafter to 17 percent compounded monthly. Assuming you transfer the K5,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of thefirst year? You are planning to save for retirement over the next 30 years. To do this, you will invest K600 a month in a stock account and K300 a month in a bond account. The return of the stock account is expected to be 12 percent, and the bond account will pay 7 percent. When you retire, you will combine your money into an account with a 9 percent return. How much can you withdraw eachmonth from your account assuming a 25-year withdrawal period? Bernard wants to save money to meet three objectives. First, he would like to be able to retire 30years from now with retirement income of K20,000 per…
QUESTION 13 How much do you still owe on your auto loan if you have 41 remaining monthly payments of $446 with annual interest of 7.2 percent assuming monthly compounding? Answer to the nearest dollar amount, and enter without the dollar sign.
QUESTION 9 Assume you have a balance of $3200 on your credit card that you want to pay off. Calculate your monthly payment and total payment under the given conditions. Assume you make no additional charges to the card. The credit card APR is 20% and you want to pay off the balance in 4 years. O $116.98; $5614.96 O $135.85; $6520.56 $83.40; $4003.29 $97.38; $4674.10
Question 2.2 the first six months, increasing thereafter to 10% compounded monthly. This offer is good as long as you transfer your current debt from your existing card. Assuming that you will transfer $5,000 balance and that you will continue to make $250 monthly payment (without making any subsequent purchases), what would be the credit card balance at the end of the first year? A credit card offers an introductory rate of 7% compounded monthly for A) $1,696.45 B) $2,000.00 C) $2.793.86 D) Answers A, B and C are not correct
Question 7 of 10 > Every year you deposit $3,400 into an account that earns 2% interest per year. What will be the balance of your account immediately after the 20th deposit? Click the icon to view the interest and annuity table for discrete compounding when i = 2% per year. Choose the correct answer below O A. $79,464 O B. $68,000 OC. $82,611 OD. $51,438 O E $84,263
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Question 11 You plan to deposit $300 at the end of every year for 12 years starting at the end of year 1. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays 8% interest annually? Question 3 Part C: Provide the value that can be withdrawn. Enter your answer in the form: 12345.67
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Problem 6-69 Calculating Interest Rates (LO2) You are buying a house and will borrow $205,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.35%. Alternatively, she tells you that you can "buy down" the interest rate to 4.15% if you pay points up front on the loan. A point on a loan is 1% (one percentage point) of the loan value. You believe that you will live in the house for only eight years before selling the house and buying another house. This means that in eight years, you will pay off the remaining balance of the original mortgage. What is the maximum number of points that you would be willing to pay now? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Maximum points