Calvin Johnson has a $4,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 3 percent of his debt balance, which is $120. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $120 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 4 percent. If Calvin made monthly payments of $160 at the end of each month, how long would it take to pay off his credit card? a. If Calvin made monthly payments of $120 at the end of each month, how long would it take to pay off his credit card?
Calvin Johnson has a $4,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 3 percent of his debt balance, which is $120. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $120 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 4 percent. If Calvin made monthly payments of $160 at the end of each month, how long would it take to pay off his credit card? a. If Calvin made monthly payments of $120 at the end of each month, how long would it take to pay off his credit card?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 23PROB
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Calvin Johnson has a $4,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 3 percent of his debt balance, which is $120.
How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of
How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of
$120 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to
4 percent. If Calvin made monthly payments of
$160 at the end of each month, how long would it take to pay off his credit card?
a. If Calvin made monthly payments of
$120
at the end of each month, how long would it take to pay off his credit card?Expert Solution
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