Answered: + nt card has a balance of $5400 and an…

+ nt card has a balance of $5400 and an annual interest rate of 1 there are no further purchases charged to the card, a. How much must you pay each month? b. How much total interest will you pay? www

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...

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Question

14: Answer both questions

K
Use PMT=
P
C
-nt
to determine the regular payment amount, rounded to the nearest dollar. Your credit
card has a balance of $5400 and an annual interest rate of 12%. You decide to pay off the balance over five years. If
there are no further purchases charged to the card,
a. How much must you pay each month?
b. How much total interest will you pay?
a. The monthly payments are approximately $
(Do not round until the final answer. Then round to the nearest dollar as needed.)
b. The total interest paid over 5 years is approximately $
(Round to the nearest dollar as needed.)
C
a
"H
W

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