IN EXCEL SIMULATIONS ANSWER THE FOLLOWING QUESTIONS

A1 > fx B D F G 3 You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 5 percent per year, compounded monthly for the first six months, increasing thereafter to 18.5 percent compounded monthly. Assuming you transfer the $7,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year? 4 6 7 8 First APR Periods for first APR Second APR Periods for second APR Balance transferred Months per year 0.5% 6 18.5% 9 10 11 7,000 12 12 13 14 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. 15 Balance in six months 16 17 18 Balance in one year 19 20 Accrued interest 21 Sheet1 + 100% READY Attempt(s) Hint Suppose an investment offers to triple your money in 12 months (don't believe it). What rate of return per quarter are you being offered? Present value Future value Number of quarters $ $ Complete the following analysis. Do not hard code values in your calculations. 13 Rate per quarter 14 Prev 10 of 10 Next