We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum payment is $10 or 2.5% of the balance remaining to be paid, whichever is higher. How long will it take to repay the debt assuming that the minimum payment is always made, and how much will we have paid in total? If we borrow the same $2,100 at the same annual interest rate of 18% but repay it as an amortized loan with a monthly payment of $55, how long will it take to repay the debt, and how much will we have paid in total?.
We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum payment is $10 or 2.5% of the balance remaining to be paid, whichever is higher. How long will it take to repay the debt assuming that the minimum payment is always made, and how much will we have paid in total? If we borrow the same $2,100 at the same annual interest rate of 18% but repay it as an amortized loan with a monthly payment of $55, how long will it take to repay the debt, and how much will we have paid in total?.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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We charge $2,100 on a credit card with an annual interest rate of 18% and for which the minimum payment is $10 or 2.5% of the balance remaining to be paid, whichever is higher. How long will it take to repay the debt assuming that the minimum payment is always made, and how much will we have paid in total? If we borrow the same $2,100 at the same annual interest rate of 18% but repay it as an amortized loan with a monthly payment of $55, how long will it take to repay the debt, and how much will we have paid in total?.
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