Kevin Moore received his monthly credit card statement from his bank. His current outstanding balance is $3,168.97.
Question:
Kevin Moore received his monthly credit card statement from his bank. His current outstanding balance is $3,168.97. The minimum monthly payment due is 1% of the outstanding balance or $20, whichever is higher. The bank uses the Average Daily Balance method to calculate the periodic interest charges. Show how the bank calculated the total estimated payments for the two scenarios: (a) the minimum payment only option and (b) $111 per month.
Transcribed Image Text:
Payment Information New Balance . . Minimum Payment Due (Current $3,168.97 $32.00 Month) Minimum Payment Due (Past Due) Total New Minimum Payment Due Payment Due Date .. $0.00 $32.00 Jun 22, 2011 Late Payment Warning: If we do not receive your minimum payment by the date listed above, you may have to pay up to a $35.00 Late Fee. Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example: If you make no additional charges using this card and each month you pay... You will pay off the And you will end up paying an estimated balance shown on this statement in about... total of... Only the minimum $5,408 9 years payment $11 $4,010 (Savings = 3 years $1,398)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (6 reviews)
Solution a the minimum payment is 2 of the bill or 20 whichever is higher 2 of the bill is 32 rounde...View the full answer
Answered By
Nisha R S
I have done my MBA in financial management And MA in Economics, after working as an Accounts Assistant in ever ready groups, now I'm a successful tutor in Chegg India and Course hero platform, though I'm not a teacher by profession I love teaching, acquiring knowledge and spreading knowledge is the two best factors, my aim is to give solutions to the students subject questions in easy , understandable and explain as they make learning interesting.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
On September 24, 2007, Miguel Carcamo was going through his mail. For some reason, Miguel had not yet received his bank statement, which he usually received at the beginning of each month. Although...
-
Your bank calculates the interest based on 12% APR on your credit card balance (monthly compounding). Suppose that your current outstanding balance is $2,000 and you skip payments for two months....
-
Mike, a recent college graduate, opened a checking account with a local bank. He asked numerous questions before deciding on this bank, including inquiring about checking account fees and annual...
-
1. Learn the detail background on ERP systems. Discuss how you would integrate ERP systems internal and external across your entire organization or an organization of your choice? Then discuss the...
-
GameStop Corp. is the world's largest retailer of new and used video game systems and software and personal computer entertainment software. It operates over 5,000 stores under the GameStop and EB...
-
You have been asked to investigate the relative performance of a banked versus pipelined L1 data cache for a new microprocessor. Assume a 64 KB two-way set associative cache with 64-byte blocks. The...
-
Jerome M. Eisenberg is an antiquities dealer and a self-proclaimed expert in classical antiquities with a doctorate in Roman, Egyptian, and Near Eastern art. Maurice E. Hall Jr. is an art dealer who...
-
The famous Y. S. Chang Restaurant is open 24 hours a day. Waiters and busboys report for duty at 3 A.M., 7 A.M., 11 A.M., 3 P.M., 7 P.M., or 11 P.M., and each works an 8-hour shift. The following...
-
1. Suppose that x1,. ,...,xk+1 is a circuit of length k in a graph G (x = xk+1) of length 3 or greater (k 3). Suppose as well that the circuit does not repeat edges (ie xx+1 xjxj+1 for i j). Show...
-
On January 1, 2023, Piper Company acquired an 80% interest in Sand Company for $2,276,000. At that time the capital stock and retained earnings of Sand Company were $1,800,000 and $700,000,...
-
Refer to Problem 15.14. For N = 2 groups with n 1 and n 2 independent observations, find the minimum modified chi-squared estimator of . Compare it to the ML estimator. Data from Problem 15.14: Let y...
-
Ms. Kennedy borrowed $4,909 from a bank to finance a car at an addon interest rate 4 of 6.105%. The bank calculated the monthly payments as follows: Contract amount = $4,909 and contract period = 42...
-
One Small Grill Company is a startup firm with the following profile: Unit selling price = $ 230; Variable cost per unit = $ 130; Fixed costs = $ 36,000; and Tax rate = 40%. What number of units...
-
Question 2: Conversion Strategies Using Blackboard Ultra as an example, explain the following What conversion strategy was used to deploy Blackboard Ultra, the new version of Blackboard? What are the...
-
In a normal heart, which statement is true regarding the systemic and pulmonary circuits? A. Pressures are the same min both circuits B. Flow rate is the same in both circuits C. Velocity is the same...
-
Why can't the fire protection problems in a community be solved solely by building more fire stations and hiring more emergency response personnel? With fire sprinklers rated as 96% effective in...
-
21. A discrete-time signal x[n] is periodic with period 8. One period of its DFT harmonic function is {X[0],,X[7]}={3,4+ j5,-4-j3,1+ j5,-4,1- j5,-4+ j3,4-j5}. (a) What is the average value of x[n]?...
-
Discuss the role of taxonomic research in informing conservation policy and management strategies, including the identification of flagship species, the delineation of evolutionarily significant...
-
The balance sheet and income statement of Eastland Products, Inc., are as follows: Income Statement for Year Ended December 31, 2013 (in Millions of Dollars)...
-
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...
-
What are the names and dollar amounts of the inventory accounts appearing on the balance sheet? What is the total amount of product costs recorded as an expense on the income statement for the year...
-
Describe the inventory cost flow equation and how it applies to the three schedules shown in Figure 1.7.
-
How does a merchandising company income statement differ from a manufacturing company income statement?
-
Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly...
-
3. A, B and C are partners sharing profits and losses equally. The balance sheet at 31st December 2020 is as follows. Assets Liabilities Amount Amount (RO) (RO) Creditors 5,000 Cash at Bank 3,000...
-
For each of the following program fragments, give an analysis of the running time. 1) sum = 0; for (int i = n; i > 0; i--) for (int j = 0; j
Study smarter with the SolutionInn App