Question: QUESTION 7 Part A: You owe $60,000 on your credit card. The credit card charges interest monthly and has an APR of 18.0%. You want

QUESTION 7

Part A: You owe $60,000 on your credit card. The credit card charges interest monthly and has an APR of 18.0%. You want to pay off the debt in 60 months. What is the monthly payment?

a. 1,624.5

b. 1,523.6

c. 1,752.6

d. 1,758.9

Part B: You want to buy a house, 5 years from now, and you plan to save $60,000 per year, beginning one year from today. You will make 5 deposits in an account that pays 6.0% interest. Your account already has a balance of $50,000. How much will you have just after you make the 5th deposit, 5 years from now (in S000s)?

a. $376.5

b. $385.8

c. $395.4

d. $405.1

e. $415.2

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