Assume you have a balance of $1000 on a credit card with an APR of 12%,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume you have a balance of $1000 on a credit card with an APR of 12%, or 1% per month. You start making monthly payments of $200, but at the same time you charge an additional $100 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. The following table shows how you can calculate your monthly balance. Complete and extend the table to show the balance at the end of each month until the debt is paid off. How long does it take to pay off the credit card debt? Fill out the table row by row, and continue until the last full payment. (Round to the nearest cent as needed.) Payment Month 0 2 3 4 $200 $200 $200 $200 Continue until the last full payment. 15 $200 Expenses $100 $100 $100 $100 $100 Interest 0.01 x $1000 $10.00 $9.10 $8.19 $7.27 $6.35 New Balance $1000 $1000-$200+ $100+$10.00 $910.00 $819.10 $727.29 $634.56 $540.91 Assume you have a balance of $1000 on a credit card with an APR of 12%, or 1% per month. You start making monthly payments of $200, but at the same time you charge an additional $100 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. The following table shows how you can calculate your monthly balance. Complete and extend the table to show the balance at the end of each month until the debt is paid off. How long does it take to pay off the credit card debt? Fill out the table row by row, and continue until the last full payment. (Round to the nearest cent as needed.) Payment Month 0 2 3 4 $200 $200 $200 $200 Continue until the last full payment. 15 $200 Expenses $100 $100 $100 $100 $100 Interest 0.01 x $1000 $10.00 $9.10 $8.19 $7.27 $6.35 New Balance $1000 $1000-$200+ $100+$10.00 $910.00 $819.10 $727.29 $634.56 $540.91
Expert Answer:
Answer rating: 100% (QA)
Heres the continuation of the table Month Payment Expenses Interest New Balance 0 200 ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Norman Freight purchased a building for $1,100,000 and depreciated it on a straight-line basis over a 30-year period. The estimated residual value was $140,000. After using the building for 15 years,...
-
Gourmet Grade has just completed its work on a new microwave entre. After consumer research was conducted, the marketing group has estimated the following quantities of the product can be sold at the...
-
The circular disk shown in Fig. 43.14 can be deformed topologically to appear as a 2-sphere with a hole in it, as shown in Fig. 43.15. We form the real projective plane from this configuration by...
-
Describe the privileging and credentialing process.
-
The following occurred during June at Hicks Family Counseling. INSTRUCTIONS Analyze each transaction. Use T accounts to record these transactions and be sure to put the name of the account on the top...
-
Consider the following three bonds: Bond 1 Bond 2 Bond 3 (a) Calculate and interpret the present values of each bond. (b) Calculate the Macaulay duration and Modified duration for each bond....
-
Can you make the journal entries for the transactions below: Dec. 1 - Sold merchandise to Argem Day Care Center for P20,000 and received a 3-month, 12% note. 2 - Purchased merchandise from Stephen...
-
a) Using the financial capital maintenance approach, how much is the profit in 2020 b.) Using the data and the conceptual framework, how much is the equity at the end of 2020? True Beauty...
-
Describe a scenario where the social network benefited the organization. How did you harness the network to accomplish your work task? For example, one might describe how they used a friendship with...
-
what theory? Enactive learning is learning by doing and experiencing the consequences of your actions (self-regulation of behavior, goal directed behavior, self-monitoring)?
-
EXPLAIN HOW A CONSUMPTION SUBSIDY LOOKS IN A GRAPH OF A SMALL COUNTRY AND A LARGE COUNTRY. Include the effects the subsidy has on world price, home price, export quantity, production surplus,...
-
What is the justifications for not enforcing safety belts on school buses and infant seats on airplanes?
-
Compare Axel Lingren's vision of the Tara Village in the second introduction by him with the vision of Trinidad, that Dion FR offers of Trinidad, in which ways are they different? are their ways in...
-
Emily Jacob is 45 years old and has saved nothing for retirement. Fortunately, she just inherited $80,000. Emily plans to put a large portion of that money into an investment account eaming a(n) 15%...
-
The nitrogen atoms in N2 participate in multiple bonding, whereas those in hydrazine, N2H4, do not. (a) Draw Lewis structures for both molecules. (b) What is the hybridization of the nitrogen atoms...
-
You observe a portfolio for five years and determine that its average return is 12% and the standard deviation of its returns is 20%. Can you be 95% confident that this portfolio will not lose more...
-
You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2356 and you have made every payment on time. The...
-
What is GAAP and who oversees it?
-
Define a closely held corporation.
-
Explain the role played by a board of directors of a corporation.
-
Explain the steps in forming a limited liability corporation.
Study smarter with the SolutionInn App