NEED FULLY CORRECT HANDWRITTEN SOLUTION FOR THIS....ASAP!!!Please be fast and I'll surely rate positive!! You owe $1239 on your credit card. Youmake a minimum payment of $55 eachmonth. The rate on the credit card is22.99% compounded monthly. How longwill it take you to pay off the card?[m] months

Credit cards loans are paid by the monthly payment that carry the payment and payment of original…

Answered: ou owe $1239 on your credit card. Yc…

Business

Finance

ou owe $1239 on your credit card. Yc nake a minimum payment of $55 eacl month. The rate on the credit card is

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

See similar textbooks

Related questions

Q: Five years ago, you invested in the Future Investco Mutual Fund by purchasing 1,100shares of the…

A: Solution:- Compound rate of return means the annual rate of return earned. We know, amount at…

Q: Your friend is studying the feasibility for opening a new company. He / She provides you with the…

A: NPV means Net Present Value. It is the difference of total present value of benefits to total…

Q: Oswego Plumbing Works (ticker: OPW) just announced that it will cut next year's dividend, D1, from…

A: Given, Share price = 24.5 Dividend = 2.25 per share with 4% growth As per Gordon Growth Model,…

Q: A loan of 40,000 Php is to be paid by equal payment at the end of each quarter for 1 year and a…

A: Loan is an amount of money borrowed from a lender. It is expected that the loan will be repaid at…

Q: QUESTION 4 Which of the following statements are correct? Pick two correct answers. Deposits are…

A: Deposits normally created by the bank when some one new customer open account with in the bank and…

Q: An existing machine in a factory has an annual maintenance cost of P40,000. A new and more efficient…

A: Present value is referred as the current value of the future amount of funds or cash flow streams,…

Q: Operating cycle of PETRON * STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3 COMPANIES AS…

A: The formula for the calculation of operating cycle is as follows: Operating cycle of…

Q: Assume that, during the next ten years, real GDP per capita in China grows at an average long-run…

A: Rule of 72 is a rule of thumb used in finance that helps in estimating the number of years that it…

Q: Davis Co. sells watches for $115 apiece. The variable cost per watch is $89. Davis has fixed…

A: Selling price = $115 Variable cost = $89 Number of units sold = 10,000 Fixed operating cost = $12000…

Q: Would you accept a project where you had an initial investment of $10,000,000 but the NPV was only…

A: Solution:- Net Present Value (NPV) means the net value in today’s term after deducting present value…

Q: A student needs P4000 per year for 4 years to attend college. Her father invested P5000 in a 7%…

A: Due to time value of money, the purchasing power of money changes over time. That is the value of a…

Q: A year ago, the Very Large Growth Fund was being quoted at an NAV of $21.18and an offer price of…

A: Investors invest their funds to get some return. Return means earn additional amount on invested…

Q: Explain the role of the Central Bank and critically evaluate the advantages and disadvantages of the…

A: The central bank performs a lot of roles which are discussed below: It maintains price stability.…

Q: e the Hoskold's Formula to compute the price if the money is worth 8% on sinking fund and the yield…

A: Given A= 5,400,000 n=7 i=5% i'=8%

Q: Jimmy and Mickey are interested to purchase their first boat. They have decided to borrow the boat's…

A: Purchase price Boat = $100,000 Income tax = 28% Cost of borrowing from boat dealer = 8% Cost of…

Q: Assuming that Bennett uses the straight-line method of amortization, interest expense for Year 2 is…

A: Bond amortization refers to a schedule which is prepared to shows the coupon payments, amount paid…

Q: When a depositor can take out more than the amount of funds, he/she has within an account is known…

A: Solution:- Taking out more funds means withdrawing more funds than the actual balance in the bank…

Q: Industrial Organization 1. Suppose firms’ market shares in the US mobile services market are as…

A: HHI measures market concentration Herfindahl-Hirschman index measures the size of firms with regard…

Q: 9. A corporation has decided to use borrowed capital to finance a portion of an equipment purchase.…

A: Borrowed amount is $40,000 Time Period is 2 year Interest rate is 7% Compounded annually To Find:…

Q: CostaCap Corporation's capital structure (market value weights) consists of 50% common stock, 10%…

A: Capital Pre tax cost Weight Tax rate Debt 3% 40% 25% Equity 8% 50% Preferred stock 5% 10%

Q: (Expected rate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year…

A: The expected return for a portfolio is the weighted average of return for the individual securities.…

Q: You want to buy a $50,000 car. You can finance the car for 0.9% interest for 5 years. You decide to…

A: Solved using Financial Calculator Assuming Interest rate is 0.9% per annum compounded monthly…

Q: 5. The January effect suggests that the financial market as a whole is B. inefficient A. efficient…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: Determine whether this investment is an attractive option for the company.

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: A municipal bond with a face value of $10,000 and bond interest rate of 8% per year payable…

A: Face Value $ 10,000.00 Coupon rate 8% Time Period 30 Yield 12% Time Passed 10

Q: On 16th may 2021 you purchased some shares at a price of $78 per dollar a share and a year later you…

A: Purchase price (P) = $78 Selling price (S) = $92 Dividend (D) = $2.5

Q: Samuel Ng received a 3-year subsidized student loan of $15,000 at an annual interest rate of 4%.…

A: Given that: Loan Amount (A)= $15000 Time(t)= 3 years Number of payments per year (n)= 12 Annual…

Q: If sterilization exists, then this implies that:

A: Sterilization is the process by which the inflow and outflow of money are controlled by the Central…

Q: The NPV of a project is $8,000. If the IRR is 12%, which of the following is the required rate of…

A: Solution:- Net Present Value (NPV) means the net value in today’s term after deducting present value…

Q: Your company is considering three options for financing its short term operations i. Borrow Tk.25…

A: Financing means arranging the funds from the external or internal sources to meet the business…

Q: nover ratio

A: Higher turnover rates imply higher fund expenditures, which might lower the fund's actual quality.…

Q: Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The…

A: Answer - Part 1 - Cash flow using the Direct Method - GREEN BRAND INC Statement of Cash Flows…

Q: Describe the three steps in an expansion capital budgeting project.

A: Capital budgeting entails financial feasibility analysis of different projects to determine their…

Q: . A certain sum of money is divided among A, B, C in the ratio 2:3:4. If A's share is $200, find the…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: Calculate the cash surrender value for Lee Chin, age 43, who purchased a $340,000 20-year endowment…

A: Cash value at end of year 10 for 20 year endowment policy is 319

Q: Derive Chere symbols have their usual meanings

Q: Cash conversion cycle of PETRON * STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3…

A: Formula: Cash conversion cycle=Days inventory outstanding+Days sales outstanding-Days payable…

Q: 11. Volume of trade is usually displayed as a B. footnote at the bottom of the price chart. C.…

A: Chart of price by volume: Price By Volume is a horizontal histogram that overlays a price chart.…

Q: . Inflation is expected to average 2.4% per year for the next 44 yea /hat percentage of the…

A: There is decrease in purchasing power due to increase in inflation and over the years this effect is…

Q: 1. Calculating Cost of Equity The Pierce Co, just issued a dividend of $2.35 per share on its common…

A: Cost of equity is referred as the return, where the corporation that requires regarding the project…

Q: An investor buys a land for PhP 1M and constructs a three-door apartment for students worth PhP 5M.…

A: Internal rate of return is a capital budgeting technique that is used by companies to decide the…

Q: Wearout Corporation has a shoelace machine with an original cost of $100,000. Depreciation expense…

A: Cost of machine = $100,000 Annual depreciation rate = 10% Tax rate = 21%

Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…

A: Before Tax Cash Flow: It is the net operating income after deducting debt service. It addresses…

Q: Mackenzie Company has a price of $36 and will issue a dividend of $2.00 next year. It has a beta…

A: a) As per CAPM, Cost of Equity = Risk free return + ( Beta * Market risk premium) = 5.5% + (1.2 * 5…

Q: Find the future value of an annuity due for payments of $450 for 12 years with a rate of 0.24%…

A: Solution:- When an equal amount is paid each period at beginning of each period, it is called…

Q: You need to borrow $10 million for 90 days. You have the following alternatives: a. Issue high-grade…

A: Given, The interest cost is associated to the alternative is the reason by way of which the…

Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…

A: The increase in operating income due to the acceptance of a new project is known as incremental cash…

Q: Practice 1 In-place overhead crane that cost $350,000 three years ago can be purchased used on…

A: Given, Cost of crane =$350,000 (3 years ago)Purchase price=$200,000 (present)Crane's Book value=…

Q: Calculating Cost of Equity Hoolahan Corporation's common stock hasS a beta of .87. If the risk-free…

A: The cost of capital is the return required by a company to determine if an investment meets the…

Q: |A stock's expected return has the following distribution: Demand for the product Probability Rate…

A: Demand for the product Probability Return of Return(ROR) Weak 10.00% 50.00% Below Average 20.00%…

Question

100%

NEED FULLY CORRECT HANDWRITTEN SOLUTION FOR THIS.... ASAP!!! Please be fast and I'll surely rate positive!!

You owe $1239 on your credit card. You
make a minimum payment of $55 each
month. The rate on the credit card is
22.99% compounded monthly. How long
will it take you to pay off the card?
[m] months

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

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
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You have a $22,000 credit card balance with an APR of 16.9%, compounded monthly, and you can afford to pay $400 per month to pay down your credit card. How long in months would it take you to pay off this balance?
You owe $3,000 on your Credit card with 24% APR. What would be the minimum payment amount if your credit card company requires at least 5% each month?
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?
Today, you purchased $5300 on a credit card that charges an APR rate of 22.9 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $100?
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?
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
Today, you borrowed $5,400 on a credit card that charges an interest rate of 14.2 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $110?
You have $2,650 balance on your charge card, and the finance charge is 16.8% annually.You send in the minimum monthly payment requested, which is $40.How much of this payment decreases your debt_______________________?And how much is the finance charge_________________?
your credit card has a balance of $3000 in an annual interest rate of 17% with no further purchase charge to the card and the balance being paid off over five years. The monthly payment is $75 and the total interest paid is $1500. You can get a bank loan at 9.5% with a term of six years complete parts, a and B below. A. How much will you pay each month? How does this compare with the credit card payment each month? A. the monthly payment for the bank loan are approximately $__ This is $__ more than a monthly credit card payments. B. The monthly payments are the bank loan are approximately $__ This is $__ less than the monthly credit card payments. B.How much total interest will you pay? How does this compare with the total credit-card interest? A. The total interest paid over 3 years for the bank loan is approximately$__. This is $__ more than the total credit-card interest. B. The total interest paid over 3 years for the bank loan is approximately $__. This is $__ less than the…
Your credit card has a limit of $3,000. You have charged goods totaling that amount. Your yearly APR is 12%. What is the finance charge one month?