1.) The previous statement for your credit card had a balance of $620. You make purchases of $170and make a payment of $80. The credit card has an APR of24%. What is the finance charge for this month? (Round your answer to the nearest cent.)

$

2.) Calculating minimum payment. You have a credit card with an APR of 36%. The minimum payment is 10% of the balance. Suppose you have a balance of $900. You decide to stop charging and make only the minimum payment. Calculate the minimum payment for the first and second payments. (Be sure to take into account the finance charges. Round your answers to the nearest cent.)

First payment $

Second payment $

3.) Assume that you have a balance of $4000on your Discover credit card and that you make no more charges. Assume that Discover charges24% APRand that each month you make only the minimum payment of3.5% of the balance.

Find a formula for the balanceBaftertmonthly payments.

4.) Assume that you have a balance of $4500on your Discover credit card and that you make no more charges. Assume that Discover charges30% APRand that each month you make only the minimum payment of2% of the balance.

What will the balance be after28months? (Round your answer to the nearest cent.)

$

5.) Assume that you have a balance of $4000on your Discover credit card and that you make no more charges. Assume that Discover charges27% APRand that each month you make only the minimum payment of2% of the balance.

What will the balance be after6years? (Round your answer to the nearest cent.)

$

6.) You have a balance of $10,000 for your tuition on your American Express credit card. Assume that you make no more charges on the card. Also assume that American Express charges 12% APR and that each month you make only the minimum payment of 4% of the balance.

Find a formula for the balance aftertmonthly payments.

A.) $10,0000.9125^t

B.) $10,0000.9696^t

C.) $10,0000.9025^t

D.) $10,0000.8325^t

^7.) You have a balance of $3800 on your credit card and you make no further charges. Assuming that your APR is 18.9% and that each month you make only the minimum payment of 5% of your balance, determine when the balance first drops below $100.

A.) After 100^thpayment

B.) After 105^thpayment

C.) After 107^thpayment

D.) After 102^ndpayment

8.) Assume that you have a balance of $1000on your Discover credit card and that you make no more charges. Assume that Discover charges15% APRand that each month you make only the minimum payment of 2% of the balance.

Find a formula for the remaining balanceBaftertmonthly payments

9.) Assume that you have a balance of $4500on your Discover credit card and that you make no more charges. Assume that Discover charges27% APRand that each month you make only the minimum payment of2.0% of the balance.

On what balance do you begin making payments of $80or less?

$

10.) Assume that you have a balance of $3300on your Discover credit card and that you make no more charges. Assume that Discover charges21% APRand that each month you make only the minimum payment of 2% of the balance.

Find how many months it will take to bring the remaining balance down to $2500. (Round your answer to the nearest whole number.)

months

Answer rating: 100% (QA)

1 To calculate the finance charge for this month we need to determine the average daily balance The average daily balance can be calculated using the ... View the full answer