Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Your bank calculates the interest based on 15% APR on your credit card balance (monthly compounding). Suppose that your current outstanding balance is $5,000 and you skip payments for two months. What would be the total balance two months from now?
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- You have an outstanding credit card balance of $3,000. You decide to stop making new charges and pay $450 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?arrow_forwardToday, you borrowed $5,400 on a credit card that charges an interest rate of 14.2 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $110?arrow_forwardYour credit card has a limit of $3,000. You have charged goods totaling that amount. Your yearly APR is 12%. What is the finance charge one month?arrow_forward
- You deposit $2,400 each year in an account bearing 4.2% annual interest, with the first deposit made upon opening the account. What will your balance be after 11 total deposits, that is, after 10 years? (Round your answer to the nearest cent; no labels please!) $4arrow_forwardYour credit card carries an annual rate of 21.6% APR with a minimum payment due monthly. If you don’t pay the monthly minimum amount for a year, what is its EAR?arrow_forwardSuppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each month, $130 is electronically debited from his checking account and placed into a savings account earning 6% interest compounded monthly. What is the value (in $) of Jorge's account after 17 months? (Round your answer to the nearest cent.)arrow_forward
- Suppose you deposit $50 at the beginningof every month in a bank account that earns1% interest per month. How many monthwill it take before you have $4175.00 inyour account?arrow_forwardSuppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each month, $140 is electronically debited from his checking account and placed into a savings account earning 6% interest compounded monthly. What is the value (in $) of Jorge's account after 17 months? (Round your answer to the nearest cent.)arrow_forwardIf a credit card has a 30-day billing period, a 20-day grace period, and charges an interest rate of 20%, compounded daily, how much interest will be charged on a $5000 average monthly balance which gets paid 40 days after the statement due date using the average daily balance method?arrow_forward
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