Personal Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (6th Edition)
6th Edition
ISBN: 9780134426839
Author: Jeff Madura
Publisher: PEARSON
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Question
Chapter 8, Problem 5FPP
Summary Introduction
To determine: The amount of interest should pay and the amount of interest will lose.
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Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three
credit cards with the following loan balances and APRs: Card 1, $4,500, 21%; Card 2, $5,700, 25%; and Card 3,
$3,100, 19%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has
captured Mary's attention by stating they can save Mary 16% per month on her credit card payments. This company
charges 16.5% APR. Is the company's claim correct? Assume a 10-year repayment period.
Mary's current minimum monthly payments are $
(Round to the nearest cent.)
Mary's minimum monthly payments after loan consolidation will be $ . (Round to the nearest cent.)
Is the company's claim correct? Choose the correct answer below.
O A. Yes because Mary's monthly credit card payments will decrease for more than 16%.
O B. Yes because Mary's monthly credit card payments will increase for less than 16%.
C. No because Mary's monthly credit card payments will…
Mary’s credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,500, 21%; Card 2, $5,700, 24%; and Card 3, $3,200, 18%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary’s attention by stating they can save Mary 25% per month on her credit card payments. This company charges 16.5% APR. Is the company’s claim correct?
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three
credit cards with the following loan balances and APRS: Card 1, $4,700, 20%; Card 2, $5,800, 24%; and Card 3,
$3,100, 17%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has
captured Mary's attention by stating they can save Mary 18% per month on her credit card payments. This company
charges 15.5% APR. Is the company's claim correct? Assume a 10-year repayment period.
Mary's current minimum monthly payments are $
Mary's minimum monthly payments after loan consolidation will be $[
Is the company's claim correct? Choose the correct answer below.
(Round to the nearest cent.)
(Round to the nearest cent.)
O A. No because Mary's monthly credit card payments will decrease for less than 18%.
OB. Yes because Mary's monthly credit card payments will decrease for more than 18%.
OC. No because Mary's monthly credit card payments will…
Chapter 8 Solutions
Personal Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (6th Edition)
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Credit Limit. What is a credit limit? How can you...Ch. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 22RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Credit Card Finance Charges. What are the three...Ch. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 25RQCh. 8 - Prob. 26RQCh. 8 - Prob. 27RQCh. 8 - Prob. 28RQCh. 8 - Prob. 29RQCh. 8 - Prob. 30RQCh. 8 - Prob. 31RQCh. 8 - Prob. 1FPPCh. 8 - Prob. 2FPPCh. 8 - Prob. 3FPPCh. 8 - Prob. 4FPPCh. 8 - Prob. 5FPPCh. 8 - Prob. 6FPPCh. 8 - Prob. 7FPPCh. 8 - Prob. 8FPPCh. 8 - Ethical Dilemma. Chen recently graduated from...Ch. 8 - Prob. 1FPOECh. 8 - Do an online search using the search term “Fair...
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