Simon recently received a credit card with an 18% nominalinterest rate. With the card, he purchased an Apple iPhone 7 for $372.71. The minimumpayment on the card is only $10 per month. a. If Simon makes the minimum monthly payment and makes no other charges, howmany months will it be before he pays off the card? Round to the nearest month.b. If Simon makes monthly payments of $35, how many months will it be before he paysoff the debt? Round to the nearest month.c. How much more in total payments will Simon make under the $10-a-month plan thanunder the $35-a-month plan? Make sure you use three decimal places for N.

Simon recently received a credit card with an 18% nominalinterest rate. With the card, he purchased an Apple iPhone 7 for $372.71. The minimumpayment on the card is only $10 per month. a. If Simon makes the minimum monthly payment and makes no other charges, howmany months will it be before he pays off the card? Round to the nearest month.b. If Simon makes monthly payments of $35, how many months will it be before he paysoff the debt? Round to the nearest month.c. How much more in total payments will Simon make under the $10-a-month plan thanunder the $35-a-month plan? Make sure you use three decimal places for N.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $410.00. The minimum payment on the card is only $10 per month. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) If Simon makes monthly payments of $30, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest whole number. month(s) How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent.$
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