First, think twice before you add that purchase to your credit card. If you charged your $2500
Question:
First, think twice before you add that purchase to your credit card. If you charged your $2500 spring break trip to your credit card or if you and your spouse just splurged for a $2500 flat screen television and charged it to your credit card, at 18% interest it would take you 34 years and six months to pay it off if you paid a 2% minimum balance and never charged another penny to your credit card."
Set-up an amortization table using the following information.
Total Number of Months: Less than 414 months.
Balance: 2500 Interest rate: 18%
Monthly Payment: 2% of the balance but not less than $10 You decide that you want to pay off the credit card in two years.
Use the PMT function to determine the monthly amount you would need to pay to have a balance of 0 at the end of 24 months.
What is the payment amount?
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates