You just received an offer in the mail to transfer your $5,000 balance from your current credit card, which charges an annual rate of 18.7 percent, to a new credit card charging a rate of 5.9 percent. You plan to make payments of $250 a month on this debt. How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card?

Q: National Co. needs to borrow P300,000 for the next 6 months. The company has a line of credit with a…

A: Introduction: Borrowing is quite prevalent in adulthood. Almost everyone will need a loan at some…

Q: Can you please explain in detail how to work out this problem?   Lane French had a bad credit rating…

A: Calculate the interest amount as follows: Interest amount = Loan repaid - Loan taken Interest amount…

Q: Ramon has a check work P90,000.00  which is dated  4 months  from today. He really needed the money…

A: Formula: Discount rate = Total discount amount / total check amount

Q: You have a loan outstanding. It requires making five annual payments of $8,000 each of the end of…

A: Given: Amount = $8000 Number of periods = 5 Rate of interest = 7%

Q: A friend asks to borrow 455 form you and in return will pay you $58 in one year.  If your bank is…

A: Present value = $55 Interest rate =6% Time =1 year So, Future value = Present value*(1+ interest…

Q: You borrow P3500 for one year from a friend at an interest rate of 1.5% per month instead of taking…

A: Answer 1: Calculation of the amount of money to be less by borrowing the money from the bank: Step…

Q: You want to borrow $44,965 from your local bank to buy a new sailboat. You can afford to make…

A: Solution Given Amount to be borrowed $44965 Monthly payments $1140 Number of period…

Q: You borrow $ 3500 for one year from a friend at an interest rate of 1.5 % per month instead of…

A: The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in…

Q: Many consumers carry a balance each month on their credit cards and make minimal payments towards…

A: Monthly payment (M) = $251.22 Interest rate = 23.77% compounded daily n = 6 years = 72 payments

Q: You have $5,000 on a credit card that charges 19% interest rate. If you want to pay off the credit…

A: Given; Principal= $5,000 Interest =19% annually or 1.58% monthly Time = 5 Years or 60 months (5*12)…

Q: you want to buy a $360,000 home. You pay 108,000 as a down payment and take out a 15 year loan at…

A: Outstanding balance is calculated by present value of annual payments left to be paid, so PV formula…

Q: Bill needs to borrow $24,000 now to pay for personal expenses. Bill would like to pay back the 1)…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: National Co. needs to borrow P300,000 for the next 6 months. The company has a line of credit with a…

A: The company does not have sufficient compensating balance so it will have to borrow a sum greater…

Q: You have a credit card that has a balance of $⁢4760 at an APR of 12.99%. You plan to pay $⁢300 each…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Suppose a person has a total credit card debt of $1.375 that has a 12% yearly interest rate. This…

A: Interest rate on savings provides the earnings to the investors while interest rate on credit card…

Q: how long will it take for teh account to be paid off?

A: Formula for loan amortization A= [i*P*(1+i)^n]/[(1+i)^n-1] Formula for calculating number of…

Q: You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Using excel PMT function

Q: Suppose that you owe $2500 on a credit card   that charges 18% APR and you pay either the…

A: The number of months it will take to pay off the loan can be seen from the amortization table.

Q: your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of…

Q: You have a loan outstanding. It requires making four annual payments of $6,000 each at the end of…

A: Annual payment = $6,000 Interest rate = 1% Period = 4

Q: NTA Co. needs to borrow P300,000 for the next 6 months. The company has a line of credit with a bank…

A: Borrowing is a common occurrence in adulthood. At some point in their lives, almost everyone will…

Q: Arman will pay back a P450,000 loan at the end of 26 months. This loan has an annual simple discount…

A: The loan is a value that is borrowed from external sources like banks and this amount is repaid…

Q: You just received your first credit card and decided to purchase a new Apple iPad. Youcharged the…

A:

Q: Do you have a total credit card debt of $6000 you receive an offer to transfer this debt to a new…

A: Annual Percentage Rate(APR) is the specified rate of interest charged by any of the authorizing…

Q: Kenny realizes that he totally forgot about a credit card that he made some charges to a few months…

A: Here, Current Balance of the Card is $1,790 APR is 19.98% Minimum Payment per month is $30

Q: Suppose I have a balance of $4500 on my Bank of America credit card.  Assume the interest rate on my…

A: Payment is made monthly, hence it is a question of annuity. Annuity means number of payments which…

Q: You are in desperate need of cash and turn to your uncle, who has offered to lend you some money.…

A: Loan options are analyzed based on the repayment amount where loan option with lower repayment…

Q: You have a loan outstanding. It requires making five annual payments of $7,000 each of the end of…

A: In order to remain indifferent between the two options,One large payment at the end of the loan’s…

Q: ou have monthly interest rate of 1.65% and a balance on your credit card of 2000.00. If you paid the…

A: To determine the interest amount and percentage that goes towards reducing principle.  The amount of…

Q: Joey realizes that he has charged too much on his credit card and has racked up $4,300 in debt. If…

A: Given that the loan amount is $4300, the payment per month is $125, annual percentage rate is 18%,…

Q: Some time ago, you put £500 into a bank account for a "rainy day." Since then, the bank has been…

A: In this case, we have to use the Compound interest formula or future value formula.

Q: You have been given eight months to pay off your gambling debt. You need $2,200 in eight months. How…

A: Interest is an additional amount which is paid or received on borrowed or lending amount for the…

Q: Banco Filipino is offering 0.8 percent compounded daily on its savings accounts. If you deposit…

A:

Q: ome time ago, you put £500 into a bank account for a “rainy day.” Since then, the bank has been…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: You borrow Php 1,000,000.00 for one year from a friend at an interest rate of 14 per month instead…

A: Borrowing = 1,000,000 Time Period (N) = 1 year   Option 1. Bank Loan at 13% per year   Option 2.…

Q: You accumulated a balance of $2,300 on your credit card that carries an interest rate of 17%. You…

A: Given:  Accumulated balance = $2300 Interest rate per year = 17% Mnthly interest rate = 17%/12…

Q: You have a loan outstanding. It requires making three annual payments of $7,000 each at end of the…

A: The following table will show the final payment which bank required-

Q: You have $4,500 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Monthly Payment: Monthly payments let a borrower pay down part of the remaining sum, which is…

Q: Your paycheck was just deposited and you noticed that had overdrawn your bank account 10 days ago.…

A: The actual cost of loan that is interest amount paid in a single year on the amount due is called as…

Q: You have an outstanding credit card balance of $2,000. You decide to stop making new charges and pay…

A: Number of months required to pay the amount is calculated using the present value of annuity…

Q: Your friend signs a promissory note for $2,000 for 30 days with a rate of 2.25% attached. After…

A: A promissory note refers to the financial instrument in a written form between the two parties in…

Q: Suppose someone offered to sell you a note calling for the payment of $1,000 in 15 months. They…

A: Bank Account:- Bank account is defined as the financial account, in which all the transactions that…

Q: A commercial bank is willing to make you a loan of P10,000. The bank wants a 12 percent interest…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: You borrow $22541 to buy a car. You will have to repay this loan by making equal monthly payments…

A: In order to calculate the monthly payment on the financial calculator, firstly we are required to…

Q: You just received your Citibank Mastercard bill and you owe $3,078.64. Your minimum payment is $57…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You are considering getting a new credit card from Imperial Credit Union. The credit union has…

A: Annual rate of Interest is given as 17.70%. (compounding monthly)Monthly rate of interest (17.70/12)…

Q: You have $2,000 on a credit card that charges a 17% interest rate. If you want to pay off the credit…

A: Credit card amount due (PV) = $2000 Annual interest rate = 17% Monthly interest rate = 17%/12 =…

Q: You have an unpaid balance of $100 on a credit card and plan to pay off the balance in 12 months.…

A: Here, Unpaid Balance is $100 Existing Interest Rate is 9% Time Period of Existing Credit Card is 12…