1. While she was travelling, Zainab took advantage of the convenience of cash withdrawals on her credit card since her Canadian debit card wasn’t accepted in the country she was in. According to her travel budget she withdrew $175 every day for food, activities and shopping for 21 days. When she got home, on the 21st day, she checked her credit card bill on-line and it showed that she had been charged interest already even though her payment wasn’t past due. It turns out that interest is compounded daily on cash withdrawals, from the day the cash is withdrawn a. If the interest rate on cash withdrawals is 28%, what was her total bill when she got home? b. What would be the total interest paid? 2. Now that Ishan and Hazel have their saving goal calculated, and rounded up to the nearest dollar, they want to start budgeting to reach that goal. They are 40 years old currently, so they have just 20 years to save up the total they calculated they would require so that they can still reach their goal of retirement by age 60. a. If they assume the same interest rate, and make deposits into their savings at the beginning of every month, how much would their deposit have to be each month? b. How much interest will be earned?
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While she was travelling, Zainab took advantage of the convenience of cash withdrawals on her credit card since her Canadian debit card wasn’t accepted in the country she was in. According to her travel budget she withdrew $175 every day for food, activities and shopping for 21 days.
When she got home, on the 21st day, she checked her credit card bill on-line and it showed that she had been charged interest already even though her payment wasn’t past due. It turns out that interest is compounded daily on cash withdrawals, from the day the cash is withdrawn
a. If the interest rate on cash withdrawals is 28%, what was her total bill when she got home?
b. What would be the total interest paid?
2. Now that Ishan and Hazel have their saving goal calculated, and rounded up to the nearest dollar, they want to start budgeting to reach that goal. They are 40 years old currently, so they have just 20 years to save up the total they calculated they would require so that they can still reach their goal of retirement by age 60.
a. If they assume the same interest rate, and make deposits into their savings at the beginning of every month, how much would their deposit have to be each month?
b. How much interest will be earned?
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