Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 and his credit card charges 19% interest compounded monthly. He is getting worried about his debt and is determined to pay it off completely . Hak Young is daunted by that monthly payment amount and is trying to figure out how he can make paying off his loan more manageable. He went to his bank and found out he could get a personal line of credit that he could then use to pay off his credit card. The line of credit has an interest rate of 9.75% compounded monthly . Assuming he still planned to pay off his debt in 5 years, what would his monthly payments to the bank be now? What will be the total interest paid?

Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 and his credit card charges 19% interest compounded monthly. He is getting worried about his debt and is determined to pay it off completely . Hak Young is daunted by that monthly payment amount and is trying to figure out how he can make paying off his loan more manageable. He went to his bank and found out he could get a personal line of credit that he could then use to pay off his credit card. The line of credit has an interest rate of 9.75% compounded monthly . Assuming he still planned to pay off his debt in 5 years, what would his monthly payments to the bank be now? What will be the total interest paid?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 and his credit card charges 21% interest compounded monthly. He is getting worried about his debt and is determined to pay it off completely.
Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 and his credit card charges 18% interest compounded monthly. He is getting worried about his debt and is determined to pay it off completely. What would Hak Young's minimum payment have to be in order to pay off his debt in 5 years? What will be the total interest paid?
Hak Young has accumulated some credit card debt while he was in college. His total debt is now $13,864.82 Hak Young is daunted by that monthly payment amount and is trying to figure out how he can make paying off his loan more manageable. He went to his bank and found out he could get a personal line of credit that he could then use to pay off his credit card. The line of credit has an interest rate of 9% compounded monthly. Hak Young realizes that payment amount, even though reduced, is just not manageable based on how much he currently makes and all of the other expenses he also has to budget for. As a result he decides paying off his debt in 10 years is simply more realistic. What would Hak Young’s monthly loan payments be with this new timeline? What will be the total interest paid?
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John Barton is both excited and amazed. Excited because on graduating from college one year ago at age 22, he landed a good job with a crypto currency exchange and he is enjoying the work. His company has good benefits and has just given him a raise so that in his next (2nd) year of employment he will be earning $55,000 per year. He is amazed because even with this raise, he feels that money is just as scarce as it was when he was a student. The paycheck comes and before he knows it, it is gone again. Certainly, he has many more “things” than he did before: a nice new car, an attractive apartment with some real furniture, and a wide screen television. Nonetheless, he is still concerned that he has little in savings to handle emergencies (becoming ill, terminated from his job) or life changing events like getting married. John feels that it is time to “get his finances in order” as his father is always saying. He intends to determine his personal Net Worth and to understand where his…
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