Let's say we have two credit cards from two different people. The first user's credit card has an interest rate of 5% APR on $500 of monthly spending. The second user's interest rate is 1% APR on $1000 of monthly spending. Let's say that each user pays off 60% of their statement each month. Which user would owe more in a year?

Let's say we have two credit cards from two different people. The first user's credit card has an interest rate of 5% APR on $500 of monthly spending. The second user's interest rate is 1% APR on $1000 of monthly spending. Let's say that each user pays off 60% of their statement each month. Which user would owe more in a year?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3CQQ

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You borrow $5000 from a family member and agree to pay it back in 5 months.Because you are part of the family, you are only being charged an interest at therate of 0.5% per month. How much will you owe after 6 months? How much is theinterest? What is the effective interest rate? What is the corresponding nominalrate?
I heard that t = 66 months, is this true or false?
Suppose you wish to borrow $800 for four weeks and the amount of interest you must pay is $20 per $100 borrowed. What is the arp at which you are borrowing money
Joe's annual income has been increasing each year by the same dollar amount. The first year his income was $21,100, and the 6th year his income was $27,100. In which year was his income $35,500? His income was $35,500 in the th year. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
Suppose you had ₱100 in a savings account and the interest rate is 20% per year and you never withdraw money or interest payments. After 5 years, how much would you have on this account in total? A. More than ₱200B. Exactly ₱200 C. Less than ₱200
Do Not Use Chatgpt. Provide handwritten Answer with Step by step & Show how We Gonna Calculate this. A working woman is planning for her retired life. She has 20 more years of service. She would like to deposit 10% of her salary which is Rs. 5,000 at the end of the first year and thereafter she wishes to deposit the same amount (Rs. 5,000) with an annual increase of Rs. 1,000 for the next 14 years with an interest rate of 18%. Find the total amount at the end of the 15th year of the above series.
Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is$17,000and the interest rate is4.2%. What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.
Geometric GradientGiven:A = 10,000.00 pesosg = -5.00%i = 10.00%n = 7 yearsP = ?
Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7%interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)
Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)
Sabrina has $657 in 2022 and pays an annual interest rate of 22%. How much money will she have at the end of 2027?
Multiperiod Consumption-Saving Plan Assume a person is 35 years old and plans to retire at age 65. So s/he has 30 more years to work. Assume the following additional information apply: Annual (real) income = $40,000 Real interest rate = 5% Expected live after retirement = 20 years Desired retirement income = 75% of pre-retirement income = $30,000 Prepare lifetime consumption-savings schedule for the person. First calculate how much s/he should have at retirement in order to consume $30,000 per year for 20 more years. This is the PV of annuity of $30,000 over 20 years at interest rate of 5%. 30,000* (PVIFAs°20) = $373,866.31. This amount is also equal to the future value of what s/he should save over her/his remaining 30 working years. (Annual saving)* (FVIFAS9,30) = $373,866.31. Solve for annual saving and you will get $5,627.22.