Applying What You’ve Learned Comparing financing methods. Mayesha purchased a large-screen TV for $ 1000 and can pay it off in 10 months with an add-on interest loan at an annual rate of 10.5 % , or she can use her credit card that has an annual rate of 18 % . If she uses her credit card, she will pay $ 100 per month (beginning next month) plus the finance charges for the month. Assume that Mayesha’s credit card company is using the unpaid balance method to compute her finance charges and that she is making no other transactions on her credit card. Which option will have the smaller total finance charges on her loan?
Applying What You’ve Learned Comparing financing methods. Mayesha purchased a large-screen TV for $ 1000 and can pay it off in 10 months with an add-on interest loan at an annual rate of 10.5 % , or she can use her credit card that has an annual rate of 18 % . If she uses her credit card, she will pay $ 100 per month (beginning next month) plus the finance charges for the month. Assume that Mayesha’s credit card company is using the unpaid balance method to compute her finance charges and that she is making no other transactions on her credit card. Which option will have the smaller total finance charges on her loan?
Solution Summary: The author explains how Mayesha can pay off her TV in 10 months with an add-on interest loan at an annual rate of 10.5%.
Comparing financing methods. Mayesha purchased a large-screen TV for
$
1000
and can pay it off in
10
months with an add-on interest loan at an annual rate of
10.5
%
, or she can use her credit card that has an annual rate of
18
%
. If she uses her credit card, she will pay
$
100
per month (beginning next month) plus the finance charges for the month. Assume that Mayesha’s credit card company is using the unpaid balance method to compute her finance charges and that she is making no other transactions on her credit card. Which option will have the smaller total finance charges on her loan?
We describe the two objectives of monetary policy mathematically:(photo)- What is that?- Explain the parameters and variables.- If a=0.6, what does it mean?
The cost to purchase the house that Bainters are considering is $195,000 but the Bainters plan to make a $40,000 down payment. The Bainters have been approved for a fixed-rate, 30-year mortgage with a 4.2% annual interest rate for the remaining costs.
The Bainters want to know how much they would pay on their loan each year as well as how much they would pay on their loan after 5 years, 10 years, 15 years, and 30 years. They also want to determine how much they would pay in interest on their loan when they repay the entire loan.
What are the amounts?
Your answer should include (remember to show or explain your calculations)
the total amount paid in loan payments after 1 year
the total amount paid in loan payments after 5 years
the total amount paid in loan payments after 10 years
the total amount paid in loan payments after 15 years
the total amount paid in loan payments after 30 years
the total amount of interest paid on the loan when it is repaid
Chapter 8 Solutions
Mathematics All Around - With MyMathLab and Workbook
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