Camilla is an accounting major and her class is studying credit card debt. She is working...

 

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Camilla is an accounting major and her class is studying credit card debt. She is working on a project in which her group determines the balance on a credit card if no payments are made. They want to see how different types of compounding affects the balance on the credit card. Their project is to determine the balance on the card that charges 14.66% on a $4,000 purchase, if no payments are made for 5 years. a. Complete the table depicting the balance on the card after the 5 year period. (round all dollar amounts to 2 decimal places) Compounding Quarterly Monthly $ Number Balance on the Card Interest Paid $ $Number Number $ Number $ Number Continuously $ Number $ Number b. Find the difference between the balance on the card when the interest is compounded monthly versus continuously. Camilla is an accounting major and her class is studying credit card debt. She is working on a project in which her group determines the balance on a credit card if no payments are made. They want to see how different types of compounding affects the balance on the credit card. Their project is to determine the balance on the card that charges 14.66% on a $4,000 purchase, if no payments are made for 5 years. a. Complete the table depicting the balance on the card after the 5 year period. (round all dollar amounts to 2 decimal places) Compounding Quarterly Monthly $ Number Balance on the Card Interest Paid $ $Number Number $ Number $ Number Continuously $ Number $ Number b. Find the difference between the balance on the card when the interest is compounded monthly versus continuously.

Answer rating: 100% (QA)

a To calculate the balance on the credit card and the interest paid we can use the compound interest ... View the full answer