1. Yuliya's credit card had balances of $800 for 15 days, $600 for 5 days, and $650...
Question:
1. Yuliya's credit card had balances of $800 for 15 days, $600 for 5 days, and $650 for 10 days. Assume an annual interest rate of 18 percent, 30-day billing cycle and 20-day grace period. How much is the interest charge using the average daily balance method, if the credit card gets paid off five days after the statement due date? (Show your calculations)
2. Del Monte bought a new car for $38,000 with a loan that will be amortized over five years. The best interest rate he got from his bank for the loan was 2.0 percent compounded annually. What is Del's monthly car payment? How much interest was paid in the first car payment? How much interest will be paid over the entire life of the car loan? (Show your calculations)
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling