Your bank calculates the interest based on 15% APR on your credit card balance (monthly compounding). Suppose that your current outstanding balance is $5,000 and you skip payments for two months. What would be the total balance two months from now?

Q: A credit card company compounds monthly and charges an interest of 1 ½ % per month. What is the…

A: Effective Interest Rate It is a rate that discounts the approximate future cash flows over the…

Q: You can afford monthly deposit of $85 into an account that pays 6% compounded monthly. How long will…

A: Monthly Deposit(PMT) = $85 Interest Rate = 6% Interest Rate per month(rate) =  6%/12 = 0.50% Future…

Q: You have a balance of $400 on your credit card and make no more charges. Assume that the card…

A: Balance amount =$400 APR =18%  Monthly rate = 0.18/12 =1.50% Time =6 months or 6 periods So, monthly…

Q: You just deposited $9,500 in a bank account that pays a 4.0% nominal interest rate, compounded…

A: Future value is referred to as the value of the current asset in future date on the basis of an…

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: The future value of a present sum of money after n periods is given by the formula Future…

Q: You have credit card debt of $1,000 at 20% APR compounded monthly. If you charge no more purchases…

A: Borrowings are the liability of the borrower which is used to finance the requirement of the funds.…

Q: You decide to make regular deposits every 2 weeks into an account that earns 5% annual interest,…

A: The future value of the deposits is $29,000. The annual interest rate is 5%. The maturity period is…

Q: Suppose on January 1st you deposit $100 in an account that pays a nominal interest rate of 11.33463%…

A: Principal, P = $ 100Nominal interesr rate = Inom = 11.33463% Daily interest rate, Rdaily = Inom /…

Q: If your credit card calculates interest based on 16.75% APR, compounded quarterly: (a) What are your…

A: The yearly rate that incorporates the magnifying effect of many compounding periods each year of…

Q: How many payments will you have made when your account balance reaches $15,000?

A: Future Value of Annuity: It is the worth of the recurring cash flows or payments at a certain…

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: If the bank states an effective interest rate of 13.5% per year, and there are 52.15 weeks, how much…

A: Formula for calculating weekly interest rate is:

Q: If the bank is paying 12% interest compounded semiannually, how much must you deposit today in your…

A: Formulae for present value is, Present value = Future value / (1+(r/n))t*n Where 'r' is rate of…

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…

Q: What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest…

A: Information Provided: payment made = $150 Term = 16 months Interest rate = 6% compounded monthly

Q: A bank is offering 10% compounded quarterly. If you put $200 in an account, how much will you have…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You make a one-time $3,088 deposit into an account which pays 2.8% compounded weekly. If you don't…

A: using excel fv function

Q: It is now January 1, 2018. You plan to make 5 deposits of $200 each, one every 6 months, with the…

A: Future value is the expected value of an investment at a future date at given rate of return. given:…

Q: How long will it take to save $2581.00 by making deposits of $227.00 at the end of every month into…

A: Amount to be saved is $2581.00 Interest rate is 7% compounded monthly Monthly deposit $227 To Find:…

Q: You have a balance of $7500 on your credit card and you make no further charges. If your APR is…

A: Monthly rate = APR /12 = 12.5% / 12 = 1.041667%

Q: how much money must you put in a savings account today?

A: PV is the money value in today’s terms which is to be received at some future date whereas FV is the…

Q: Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long…

A: Information Provided: Initial deposit = $22,000 Future value = $76,000 Interest rate = 6% compounded…

Q: If you deposit 2500 into an account paying 11% annual interest compounded quarterly, how  long until…

A: The number of years: An initial investment grows to a certain given amount at a specified interest…

Q: while at the bank, you see a brochure with two saving account options. One pays interest at 4.35%…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly…

A: To complete this table we have add simple interest on ending balance and then add deposit balance to…

Q: Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month…

A: Future Value of Cash Flow = Amount Invested * ( 1+r)n Where r is Rate of Interest and n is period…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: given, annuity due, monthly payment = $130 number of period= 16 the table given in the question is…

Q: Suppose you put $250 at the beginning of every month in a savings account that credits interest at…

A: Monthly deposit is $250. Annual rate of interest is 6%. Time period is 25 years. Compounding…

Q: Suppose that you deposit $15 at the end of each month into a savings account that pays 2% interest…

A: Following informations are given in the question:

Q: your credit card has a balance of $4,500 and an annual interest rate of 16%. you decide to pay off…

A: The monthly deposit is calculated by dividing the loan balance with the PVIFA at 1.33% and 36…

Q: To establish a "rainy day" cash reserve account, a certain company deposits $12,000 of its profit at…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

Q: You're prepared to make monthly payments of $260, beginning at the end of this month, into an…

A: The number of payments made can be calculated with the help of NPER function of Excel

Q: Suppose you deposit $125 on the first of every month for 240 months, and the bank credits interest…

A: The term annuity depicts a stream of equivalent periodic cash flows over a specific time duration.…

Q: You deposit $35,000.00 in an account that pays 6% compounded quarterly and immediately start making…

A: Amount Deposited = $ 35,000 Rate of Interest = 6% compounded quarterly

Q: You have just received an offer from a bank for a credit card with a quoted rate, or APR, of 18…

A: In the given question we need to compute the Effective annual rate (EAR).

Q: Suppose that you deposit $750 into a bank account today. If the bank pays 8 percent APR per year,…

A:

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Month deposit (P) = $ 130 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period (n) =…

Q: ose you deposit $50 at the beginning of every month in a bank account that earns 1% interest per…

A: More is compounding of interest rates more is effective interest rate and more is interest…

Q: The Little Red-Haired Girl makes quarterly deposits into an account paying an effective interest…

A: If the little Red- Haired girl and start with $4,200.00 in a savings account earning a 14%(3.5×12)…

Q: a. If the bank compounds interest annually, how much will you have in your account on January 1,…

A: Comment: The Question is Multipart, so SME will answer only three subparts. For the rest of the…

Q: You have maxed out your $10,000 credit card, which is being charged 12.8% annual interest compounded…

A: Calculation of minimum monthly and weekly payments:Answer:The minimum monthly payment and weekly…

Q: Assume that you have a balance of $5500 on your Discover credit card and that you make no more…

A: The annual percentage rate that is APR refers to the interest rate on the credit card. The interest…

Q: Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but…

A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…

Q: Suppose you run up a debt of $300 on a credit cardthat charges an annual rate of 12 percent,…

A: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other…

Q: Suppose you deposit $3600 to open an account that earns 6% interest compounded monthly. You are…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily…

A: Invested amount (P) = $ 2000 Annual interest rate = 4% Daily interest rate (r) = 4%/365 =…