According to the add-on method, the interest on the loan is calculated using the following equation
Interest = $ 24,780
Total payment to be repaid = $ 59,000 + $ 24,780 = $ 83,780
Monthly payment by add-on method = $ 1163.61
For the best terms on a loan or credit card, you need a credit score above...
Credit Score Worksheet Your credit score is the overall grade that you have been given that tells a bank or credit union how you handle your money. Credit scores can range from 300 to 850. A good credit score is 700 or above. To make your credit score better, pay all of your bills on time. Do not 'max out' your credit card; try to keep it below 40% of the available credit limit. For example, if your credit limit...
You have credit card debt of $ 30 comma 000 that has an APR (monthly compounding) of 17 %. Each month you pay the minimum monthly payment only. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 11 %. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card,...
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 9% APR and...
You have credit card debt of $37,500 that has an APR (monthly compounding) of 16%. Each month you pay the minimum monthly payment only. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 11%. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card, and borrow additional money as...
The problem: Monica's current debt consists of three types of loans: a bank card, an auto loan and a department store card. She owes a total of $25,000 and her monthly payments sum to $549.61.The amount she owes, the monthly payment and the interest rates appear in the table below: Loan Type Annual Percentage rate, APR Loan Amount Monthly Payment Current Debt) S12,000 $11,500 S 1,500 $25,000 Bank Card Auto Loan 18% 5.5% $243.85 $257.88 Department Store Card | 15%...
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 9% APR and...
Jenna is considering paying off her current credit card bill with a 2-year loan from her bank. She has stopped using the card and is paying $100 per month that will pay off the total balance in 2 years. The bank charges an upfront $500 fee to make the loan but will lower her monthly payment to $50 per month. Jenna is evaluating the loan using the payback period method with a 1-year payback period as the goal. Should she...
9. Credit Cards: a. If you have a balance of $1,245.00 on your credit card, how long will it take you to pay off the balance if you make $50.00/month payments until it is paid off? The APR is 19%. b. What will be your monthly payment on a credit card with a balance of $2,456.80, if you desire to pay it off in 2 years, at an APR of 23.99%? 10. A furniture company allows customers to purchase household...
Homework: Homework 4D - Loan Payments, Credit Cards, Mortga Save Score: 0 of 1 pt 7 of 10 (7 complete) HW Score: 55%, 5.5 of 10 pts 4.D.27 Question Help Someone needs to borrow $11,000 to buy a car and the person has determined that monthly payments of $250 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain....
if you are trying to build credit by using a credit card eah time you make a purchase with the credit card deduct that amount from your checking account that way when your credit card is due you will have enough to pay the credit card off in full Kathy lehner is going to start doing this.she plans on paying her credit card bill in full this month.Hpw much does she owe with a 12% APR and the following transactions...