Credit Card Minimum Payments Credit cards are great in moderation. To help boost your FICO score, always pay your credit card balance (all of it) on time. Avoid late fees and penalties! Also keep your credit card charges to one-fourth of your credit limit. For example, a credit card balance of $1,000 will be one-fourth of your limit of $4,000 and will incur a monthly payment of $22.24 at 1% per month. This payment will be avoided if you can pay off all the $1,000 that you have charged to your credit card. About how many months has the credit card company built into its calculation of the $22.24 monthly payment?

Credit Card Minimum Payments Credit cards are great in moderation. To help boost your FICO score, always pay your credit card balance (all of it) on time. Avoid late fees and penalties! Also keep your credit card charges to one-fourth of your credit limit. For example, a credit card balance of $1,000 will be one-fourth of your limit of $4,000 and will incur a monthly payment of $22.24 at 1% per month. This payment will be avoided if you can pay off all the $1,000 that you have charged to your credit card. About how many months has the credit card company built into its calculation of the $22.24 monthly payment?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Credit cards are great in moderation. To help boost your FICO score, always pay your credit card balance (all of it) on time. Avoid late fees and penalties! Also keep your credit card charges to one-fourth of your credit limit. For example, a credit card balance of $1,000 will be one-fourth of your limit of $4,000 and will incur a monthly payment of $22.24 at 1% per month. This payment will be avoided if you can pay off all the $1,000 that you have charged to your credit card. About how many months has the credit card company built into its calculation of the $22.24 monthly payment?
You have a credit card with an APR of 24.99 %, monthly compounding, that has a balance of $6,600. You want to transfer this balance to a different card with an APR of 8.99%, monthly compounding. Assuming that you will make minimum payments of $ 160 per month for either card, what transfer fee would make you ambivalent between transferring or not?
You currently have a credit card with a balance of $450. If you have a credit limit of $2,000, what is your credit utilization rate?Round to the nearest percent.
Match the following credit terms with the correct description. APR [Choose ] [Choose ] Known as the Annual Percentage Rate. Some credit cards charge these. They can be charged for membership and you may be required to pay them once a year. Credit cards that offer these give you cash or points for purchases you make. Occurs when you don't pay your monthly payment on time. These occur when you transfer your balance to a different card. When you move an existing balance to another credit card or account. The least amount of money you are obligated to pay back on a monthly basis to avoid fees and penalties. [Choose ] [Choose ] [Choose ] [Choose ] Fees Rewards Finance Charges Late fees Balance Transfer Minimum payment
Mint.com, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using Mint.com, you realize you need to pay off one of your high interest loans to reduce your interest expense. You decide to discount a $5,300, 340-day note at 2% to your bank at a discount rate of 5.0% on day 200. What are your proceeds?
1 Need help asap Currently, your credit card has a balance of $14,000. The credit card has an effective monthly interest rate of 0.95%. Assuming you make no additional purchases with your credit card, how many monthly payments in the amount of $2,200 until your balance is paid off?
1. Which credit card offers the best interest rate? 2. Which credit card has the highest annual percentage rate? Platinum Citibank, Visa 3. What fee is the same for all the credit cards shown and how much is it? Cash Advance Fee, 3% 4. Which credit card has the highest annual fee? 5. Which credit card do you think is the worst card to obtain? Explain why. 6. Which credit card do you think is the best card to obtain? Explain why.
Which of the following is true about credit card finance? a. Interest rates are high on credit card b. Provides interest free credit for 12 months c. All the options are wrong d. Credit card comes unlimited credit limit
There are some excellent free personal finance apps available: Mint.com, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using Mint.com, you realize you need to pay off one of your high interest loans to reduce your interest expense. You decide to discount a $5,450, 330-day note at 2% to your bank at a discount rate of 3.5% on day 230. What are your proceeds? Note: Round your final answer to the nearest whole number. Proceeds
please correctly solve.and not use of excel not use excel. Q)You have $3,500 on a credit card that charges a 19% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?
there are some excellent free personal finance apps available: mint.com, goodbudget, mvelopes, billguard, pocketexpense, homebudget, and expensify. after using mint.com, you realize you need to pay off one of your high interest loans to reduce your interest expense. you decide to discount a $5,250, 345-day note at 3% to your bank at a discount rate of 4.5% on day 210. what are your proceeds? (round your answer to the nearest cent.) Proceeds: ??
Finding the time necessary until you pay off a loan is simple if you make equal payments each month. However, when paying off credit cards many individuals only make the minimum monthly payment, which is generally 1% to 2% of the balance or $25 whichever is greater. Locate the credit card calculator at fincalc website and work out this exercise: a) You currently owe $25,000 on a credit card with a 16% interest rate and a minimum payment of $25 or 1% of your balance. b) How soon will you pay off this debt if you make the minimum payment each month? c) How much total interest will you pay using that method? d) Calculate how soon you would pay off this debt if you paid $250 per monthly payment.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS