7. You just received a $1,000 bill for your credit card, which has an annual interest rate of 18%. Your credit card company uses the previous balance method (i.e. charges interest on the unpaid balance on the first day of the billing period) in order to calculate the interest you owe. Suppose you make a $200 payment tomorrow, and make no new charges to your credit card in the next month. What will be the balance on your next credit card bill (a month from now)?
7. You just received a $1,000 bill for your credit card, which has an annual interest rate of 18%. Your credit card company uses the previous balance method (i.e. charges interest on the unpaid balance on the first day of the billing period) in order to calculate the interest you owe. Suppose you make a $200 payment tomorrow, and make no new charges to your credit card in the next month. What will be the balance on your next credit card bill (a month from now)?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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