Suppose that on January 1 you have a balance of $5600 on a credit card whose APR is 17%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? a. The monthly payment is? Then round to the nearest cent as needed.) 2. Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $160,000 loan. Option 1: a 30-year loan at an APR of 8%. Option 2: a 15-year loan at an APR of 7.5%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $enter your response here. The monthly payment for option 2 is $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.)
Suppose that on January 1 you have a balance of $5600 on a credit card whose APR is 17%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? a. The monthly payment is? Then round to the nearest cent as needed.) 2. Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $160,000 loan. Option 1: a 30-year loan at an APR of 8%. Option 2: a 15-year loan at an APR of 7.5%. Question content area bottom Part 1 Find the monthly payment for each option. The monthly payment for option 1 is $enter your response here. The monthly payment for option 2 is $enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.)
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 2STP
Related questions
Question
1.
Suppose that on January 1 you have a balance of
$5600
on a credit card whose APR is
17%,
which you want to pay off in
1
year. Assume that you make no additional charges to the card after January 1.a. Calculate your monthly payments.
b. When the card is paid off, how much will you have paid since January 1?
c. What percentage of your total payment from part (b) is interest?
a. The monthly payment is?
Then round to the nearest cent as needed.)
2.
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs.
You need a
$160,000
loan.Option 1: a 30-year loan at an APR of
8%.
Option 2: a 15-year loan at an APR of
7.5%.
Question content area bottom
Part 1
Find the monthly payment for each option.
The monthly payment for option 1 is
$enter your response here.
The monthly payment for option 2 is
$enter your response here.
(Do not round until the final answer. Then round to the nearest cent as needed.)
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