ou have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the minimum payment of 50.00 each month: How much of the 50.00 would go towards interest? What PERCENTAGE would go towards reducing the principle (the balance

ou have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the minimum payment of 50.00 each month: How much of the 50.00 would go towards interest? What PERCENTAGE would go towards reducing the principle (the balance

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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You have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the minimum payment of 50.00 each month:

How much of the 50.00 would go towards interest?
What PERCENTAGE would go towards reducing the principle (the balance)

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