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?

Q: Suppose you wish to borrow $400 for four weeks and the amount of interest you must pay is $20 per…

A: The objective of this question is to calculate the Annual Percentage Rate (APR) for a loan of $400…

Q: You owe $3,000 on your Credit card with 24% APR. What would be the minimum payment amount if your…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: You purchase a new laptop for $1200 and put it on your credit card, which charges 14.99% interest.…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: If you sign a discount note for $4,400 at a bank discount rate of 8%, for 90 days, what is the…

A: Effective annual rate is defined as the actual rate that is earned on the investment. It shows the…

Q: You currently have a credit card with a balance of $450. If you have a credit limit of $2,000, what…

A: In order to find out the credit utilization rate, we need to divide the credit availed by total…

Q: the apr on the card is 12%, and you are not going to use the cardinal paid in full. assume you owe…

A: Credit debt = $1,383 Interest Rate = 12% APR Monthly Payment = 140

Q: Angela has a Macy’s credit card. The card has a balance of $2088.74 with an APR of 28.99%. Macy’s…

A: Card Balance is $2088.74 APR is 28.99% Minimum payment rate is 3.9%   To Find: Minimum Payment…

Q: Paying off credit card debt: 000.8012=000.5062000.0128 What will be your monthly payment if you have…

A: The time value of money is the idea that an amount of wealth is considerably more right now than it…

Q: Suppose you deposit $600 in an account that earns 4% interest. How long will it take for your money…

A: Future value (FV) = $1,200 Deposit (PV) = $600 Rate = 4% T = ?

Q: If your Visa credit card has an APR of 14.49%, compounded monthly and your current balance is…

A: APR is 14.49% Compounded monthly Current Balance is $425.69 Time period 1 year Minimum monthly…

Q: Suppose you plan to start a saving account. You plan to deposit $98 each month in to a money market…

A: Compound = Monthly = 12Payment = p = $98Interest Rate = r = 6 / 12 = 0.5%Future Value = fv = $2000

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Interest Rate = 6% APR Previous Balance = $1,173 Calculation of Number of days between is as follow:…

Q: You have a credit card that has a balance of $10,700 at an APR of 14.49%. You plan to pay $⁢400 each…

A: The credit card refers to the debt instrument used by individuals to access funds that they repay at…

Q: You have a credit card that has a balance of $7590at an APR of 21.99%. You plan to pay $400each…

A: The objective of this question is to determine how many months it will take to pay off a credit card…

Q: You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Using excel PMT function

Q: annual interest rate on a credit card is 24.99%. If a payment of $100.00 is made each month, how…

A: We need to use NPER function in excel to calculate time to payoff loan. The formula is:…

Q: How long would

A: Given information : Repayment amount  $      25.00 Interest rate 19% Loan amount  $2,000.00…

Q: Suppose you have a Visa credit card and pay a 20 percent annual fina charge (1.67 percent per month)…

A: The credit card charges interest on average daily balance and finance charges on based on month on…

Q: Suppose Olivia has $7,020 in credit card debt on the B credit card which has annual interest rate of…

A: Credit Card: It represents a card issued by the banks as a service of allowing cardholders to…

Q: Suppose I secure a simple interest note for $4500.  The length of the note is 102 months and the…

A: Interest = Principal * rate * time  Interest = $4500 * 6.20% * 102 /12 Interest = $2,371.50

Q: Your credit card charges an APR of 29% on your balance. Interest is compounded on a daily basis, 365…

A: Given information: Annual rate : 29% (This rate would have to be converted on monthly basis…

Q: You have a credit card with an APR of 24%. The card requires a minimum monthly payment of 8% of the…

A: APR  Annual Percentage Rate):The APR is the annualized representation of the interest rate on a…

Q: ou have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the…

A: To determine the interest amount and percentage that goes towards reducing principle.  The amount of…

Q: You have been given eight months to pay off your gambling debt. You need $2,200 in eight months. How…

A: Interest is an additional amount which is paid or received on borrowed or lending amount for the…

Q: How can we calculate the total annual interest payment for a credit card debt of $ 1,000?

A: We should pay the credit card bill by the end of credit free period to avoid interest charges upon…

Q: ery month. What is the APR?

A: APR is annual percentage rate of credit card which is charged based on monthly basis interest rate.

Q: You have $5,000 on a credit card that charges a 19% interest rate. If you want to pay off the credit…

A: To calculate the monthly payment we will use the below formula   Monthly payment =…

Q: you sign a discount note for $9,500 at a bank discount rate of 9% for 3 months, what is the…

A: A discount note is a short-term debt obligation issued by highly-rated corporations or…

Q: If a person has ATM fees each month of $22 for 8 years, what would be the total cost of those…

A: Monthly fees: $22Number of years: 8

Q: Michela Navarro has $3,956.71 in credit card debt. If she makes a monthly payment of $125 (and makes…

A: Here, Total Amount of Credit Card (PV) is $3,956.71 Monthly Payment is $125 Interest Rate is 22.1%

Q: 5) According to a recent WalletHub report, the average credit card balance is $10,848 per American…

A: Credit card:A credit card is a financial tool that enables individuals to make purchases on credit,…

Q: You are looking at two savings accounts. One pays 5.25%, with daily compounding. The other pays 5.3%…

A: Effective Annual Interest Rate means the real rate of return on interest-paying instruments or…

Q: You have a credit card that has a balance of $6400 at an APR of 13.49%. You plan to pay $300 each…

A: The objective of the question is to determine the number of months it will take to pay off a credit…

Q: 15.67 with an APR of 27.8%. I make the minimum payment of $175 a month. How long will it take to pay…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of…

Q: (b) With a constant monthly payment of $40 per month, how many years would it take to pay off the…

A: Credit card are very common now days but the charges are very much so one has to very careful when…

Q: A commercial bank offers you a credit card with an annual percentage rate APR = 9%, compounding…

A: Annual Percentage rate = APR = 9%Compound = n = Monthly = 12

Q: You owe $7200 on a credit card, your company says the minimum payment is 3% of what you owe. How…

A: The amount owed is $7200 APR of 22% The minimum payment is 3% To Find: Time period

Q: ) If you make no payments and no additional purchases for one year, what will be the amount owed at…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Using the daily balance method of calculating interest, how much interest will you owe on a $500…

A: Given,  Credit card balance = $500 interest  = 20% = 20/100 = 0.2 time = 3 weeks  = 21/365

Q: 4 years? What is the effective interest rate if the present worth factor is 0.6875

A: Present value factor is the factor used to convert a future cashflow to current terms. That is, when…

Q: ANNUITY: Suppose you owe $1,500 on your VISA card and the interest rate is 2% per month. If you make…

A: An annuity is a financial product that provides a series of payments at regular intervals, typically…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.