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1) Your credit card has a current balance of $4,965.20. This balance is accruing interest at a nominal rate of 24.0% compounded monthly. A) Assuming you didnt spend any more on this card, what uniform end-of-month payments over the next 36 months would be required to reduce the loan balance to zero at the end of three years from today? B) Suppose you plan on spending an additional $1,000 at the end of next year (end of month 12) and S1,000 at the end of the following year (end of month 24) on this same card. What uniform end-of month payments over the next 36 months would be required to pay off the existing debt along with the additional new purchases? Hint: I am looking for one A value in months 1-36
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Answer #1

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum 11.A. A.--- 9- ー E ゴText ずWrap Text General Fill Formatz すFormat Painter B l U. ーータ.Δ. -=- 還便困Merge & Center. $,%,,Ma conditional Format Cell Insert Delete Format Clipboard 88Conditional Formattng as Table styies 2 ClearFe Select Editing Alignment Number Cells AB FORMULA CALCULATION OF A PMT BALANCE RATE MONTHS PMT PVAA//m) (1-1/(1+r/m)Anm) 4965.2- A/(0.24/12) (1-1/1+(0.24/12)A3*12)) 4965.2-A/0.02*(1-1/(1.02436)) 4965.2 A/0.02*(1 -1/2.03989) 4965.2A/0.02*0.50978 A4965.2 0.02/0.50978 4965.2 24% COMPOUNDED MONTHLY 4 36 $194.80 EXCEL PMT(R3/12,R4,-R2) 6 194.80 9 PV-FV/(1+/m)nm CURRENT BALANCE $ 4,965.20 PV OF 1000 PV OF 1000 PRESENT VALUE 6,375.41 10 $788.49 EXCEL PV(R3/12,12,,-1000) END OF 12 MONTHS PV OF 1000 1000/(1+0.24/12)41*12 S621.72 EXCEL PV(R3/12,24,,-1000) END OF 24 MONTHS PV OF 1000 1000/(1+0.24/12)A2*12 1.2 133 14 15 16 17 18 19 PVA-A/(r/m)*(1-1/((1+r/m)nm) 6375.41 A/0.02*0.50978 A-6375.41 0.02/0.50978 $250.13 EXCEL PMT(R3/12,36,-R10) 250.12 Sheet2 Z scORE nsu pv fv cash opti LINE OF CREDIT eog miler CARD BANKER ACCEPTANC FACTOR SI DISC FOCAL 80 ае 08:56 15-01-2019

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