You decide to buy a used 2014 Kawasaki Ninja 300 motorcycle for $4300. You make the...
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You decide to buy a used 2014 Kawasaki Ninja 300 motorcycle for $4300. You make the purchase with a credit card. Your credit card has an APR of 21.3%. You owe nothing else on this card. Questions: 1 1. What is the monthly interest rate? 2. How long will it take you to pay off the debt if you make payments of $100 a month? 3. How much interest will you have paid by the time you finish paying it off? 4. After owning the motorcycle for 2 years, you decide to sell it. How much do you still owe at this point? Calculate the interest as simple interest each month after your payment. The following is a simplified model of actual charges: New balance = old balance - payment + monthly interest To answer these questions, set up a table in Excel such as the following: 2 5. If you sell it for $2900, will you be able to pay off the remaining balance? 6. Write at least one paragraph discussing the pros and cons of this scenario. Month Old Balance Payment Old Balance Minus Payment Interest Charged New Balance You decide to buy a used 2014 Kawasaki Ninja 300 motorcycle for $4300. You make the purchase with a credit card. Your credit card has an APR of 21.3%. You owe nothing else on this card. Questions: 1 1. What is the monthly interest rate? 2. How long will it take you to pay off the debt if you make payments of $100 a month? 3. How much interest will you have paid by the time you finish paying it off? 4. After owning the motorcycle for 2 years, you decide to sell it. How much do you still owe at this point? Calculate the interest as simple interest each month after your payment. The following is a simplified model of actual charges: New balance = old balance - payment + monthly interest To answer these questions, set up a table in Excel such as the following: 2 5. If you sell it for $2900, will you be able to pay off the remaining balance? 6. Write at least one paragraph discussing the pros and cons of this scenario. Month Old Balance Payment Old Balance Minus Payment Interest Charged New Balance
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Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
Posted Date:
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