Answered: How much interest will you have to pay…

How much interest will you have to pay for a credit card balance of $875 that is 1 month overdue, if a 17% annual rate is charged?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 25E

See similar textbooks

Related questions

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: We need to use previous balance method to calculate monthly finance charge. Finance Charge using…

Q: You can afford monthly deposit of $85 into an account that pays 6% compounded monthly. How long will…

A: Monthly Deposit(PMT) = $85 Interest Rate = 6% Interest Rate per month(rate) = 6%/12 = 0.50% Future…

Q: How long would you have to wait for a deposit of $1,625 to earn $34 in interest? Assume that the…

A: Interest = Principal * Rate * Time

Q: If you sign a discount note for $4,400 at a bank discount rate of 8%, for 90 days, what is the…

A: Effective annual rate is defined as the actual rate that is earned on the investment. It shows the…

Q: How much would you have to deposit at the end of the year in an account that pays an interest rate…

A: Monthly Deposit: It is the deposit made by the person over the period to accumulate a sum of money.…

Q: Find the monthly payment for a bank loan. (Round your answer to the nearest cent.) $100 loan for 12…

A: Answer Principle amount = $100 Interest rate =12% Time = 12 months

Q: Suppose you have received a credit card offerfrom a bank that charges interest at 1.4% per…

A: Working note:

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: The average balance method used the average balance in a month to calculate the finance charges.…

Q: If your credit card calculates interest based on 16.75% APR, compounded quarterly: (a) What are your…

A: The yearly rate that incorporates the magnifying effect of many compounding periods each year of…

Q: How many months will it take to pay off a credit card debt of $4,000 by paying $250 per month at an…

A: Using NPER function in excel

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: The annual interest rate on a credit card is 13.99%. If the minimum payment of S30 is made each…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: If you have a $15,000 car note with a $450.00 monthly payment, payable over 36 months, what interest…

A: In the given question we need to compute the interest rate from following details: Car note value =…

Q: What amount can you borrow if you make nine quarterly payments of $5,300 at a 16% annual rate of…

Q: The quoted rate on your credit card is 18 percent and the card has a $57 annual fee. If your average…

A: Transactions in credit card is chargeable with monthly interest rate. Finance charge =average daily…

Q: If you have a $19,500 car note with a $380.00 monthly payment, payable over 60 months, what interest…

A: In the above question we need to compute the interest rate from following details: Value of card…

Q: Calculate the monthly finance charge for the credit card transaction. It takes 10 days for a payment…

A: We will calculate the interest on the basis of simple interest.

Q: First Bank offers you a car loan at an annual rate of 10% compounded monthly. What effective annual…

A: Effective annual interest rate is the rate of interest actually earned due to compounding of…

Q: Your bank is offering you an account that will pay 20% interest in total for a two-year deposit.…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: A payday loan company charges you 3% interest to borrow money for just two weeks. What is the…

A: Payday loan is a very-short period finance, generally for few weeks which is provided to salaried…

Q: The Cardex Credit Card Company charges a nominal 24 percent interest on overdue accounts, compounded…

A: Effective interest rate is the interest rate that is earned or paid after considering the…

Q: You have $4,500 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: Using excel PMT function

Q: A payday loan company charges 5% interest for a 2 week period. What would be the annual interest…

A: Interest Rate = 5%Period of Interest Charge = 2 WeeksNumber of Weeks in a Year = 52 Calculation of…

Q: A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement…

A: A credit card is a pay later facility provided by the banks to its customers. Banks charge interest…

Q: You owe $190 on your credit card. billing cycle is 30 days, and the int What is your interest…

A: Average Daily Balance method Finance charges on your credit card is calculated using average Daily…

Q: You have an account with a $1000 credit limit that charges 12.25% interest using the average daily…

A: In credit cards they are charged based on the daily balance and there is need of daily balance and…

Q: magine you have a credit card balance of $1,000 that you would like to pay off within one year. The…

A: The credits cards are settled on the monthly payments and are paid by monthly payments and these…

Q: A department store has offered you a credit card that charges interest at 1.75% per month compounded…

A: Computation:

Q: How much is the fee if you need to borrow $400,000 for one year with $475,000 line credit, where any…

A: The fee for unused credit is calculated as the unused credit multiplied by the charge for unutilized…

Q: calculate the monthly finance charge for the credit card transaction. Know that it takes 10 days for…

A: There are various method in which the interest on credit card is charges such as previous balance,…

Q: you recieve a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: The nominal rate of interest is the rate that is free from the compounding effect. it is also known…

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Average daily balance is the average of the monthly expenses Date No of days Balance…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Average Daily method: in this method for a billing cycle Each day Balance is Divided by the Total…

Q: You charged $3,172 on a credit card. If you pay the minimum payment per month of $46.69, you will…

A: Charge of credit card = 3172 Minimum monthly payment = 46.69 N = 96 payments

Q: You have $3,500 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: PMT= Present Value of annuity/{1-[1/(1+r)^n]/r} Where r =rate of interest per period i.e. 14%/12=…

Q: You have $4,500 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Monthly Payment: Monthly payments let a borrower pay down part of the remaining sum, which is…

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Credit card is a facility provided by the credit card companies to its customers in which customer…

Q: You have a $22,000 credit card balance with an APR of 16.9%, compounded monthly, and you can afford…

A: PV 22000 RATE 17% COMPOUNDING PER YEAR 12 PMT 400 TIME PMT PRINCIPAL…

Q: you receive a credit card offer that charges interest at 1.75% per month compounded monthly. What is…

A: Information Provided: Interest rate = 1.75% Compiunding = monthly

Q: A payday loan company charges you 4% interest to borrow money for just two weeks. What is the…

A: Equivalent annual rate is the real rate of return that is obtained on an investment. It is…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Case : As the question provides that the payment receive and record would take time of 10 days .…

Q: A credit card has a 21.99% APR, a minimum monthly payment of 3.15%, and a current monthly statement…

A: Minimum monthly payment is the least amount of money paid by the credit card holder every month .…

Q: a credit card has a 30-day billing period, a 20-day grace period, and charges an interest rate of…

A: In this case, we use the average daily balance method to calculate the interest charged. It is one…

Q: You have $2,000 on a credit card that charges 18% interest rate if you want to pay off the credit…

A: The amount of loan = $2,000 Interest rate = 18% Time period = 4 years

Question

How much interest will you have to pay for a credit card balance of $875 that is 1 month overdue, if a 17% annual rate is charged?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
The annual interest rate on a credit card is 24.99%. If a payment of $100.00 is made each month, how long will it take to pay off an unpaid balance of $2,487.56?
the annual interest rate on a credit card is 12.99%. If a payment of $300.00 is made each month ,how many months will it take to pay off an unpaid balance of $2,446.16?
if the APR on your credit card is 15.80% compounded monthly, what will be the total amount owed on the credit card in 2 years if you have an unpaid balance of $3500