Question

11

Simon recently received a credit card with an 19% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month. c. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan. Round your answer to two deci mal places at the end of the calculations. For example, if your answer is $345.667 enter as 345.67 and if your answer is .05718 or 5.718 % enter as 5.72 in the answer box provided.

Answer 1

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I HAVE NOT ROUNDED INTERMEDIATE CALCULATIONS.

EVEN NO OF MONTHS ARE NOT ROUNDED WHILE CALCULATING TOTAL PAYMENT IN OPTION "c" AS NOTHING WAS MENTIONED

WORKING CAPITAL APPROACH Microsoft Excel (Product A vation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins - Cut AutoSum A A General Wrap Text Calibri 11 Fill Copy A Merge & Center Conditional Format Insert Delete Format Paste S % Cell Sort & Find & BIU 2 Clear Format Painter ble Styles er Select Formatting Clipboard Font Alignment Number Shules Cells Editing BF44 BD BA BB BC BE BF BG BH BI BJ BK 26 27 28 19% rate 29 purchase price 350 10 per month 30 pmt 31 periods 12 51.4224 [=NPER(BE28/BE31,-BE30, BE29)] (a) no of months to pay off 32 33 51 MONTHS answer ROUNDING 34 35 (b) 19% rate 30 per month 36 pmt 13.0004 NPER(BE28/BE31, -BE36,BE29)] no of months to pay off 37 answer ROUNDING 38 13 MONTHS 39 40 PAYMENT IN MONTHLY INSTALMENT OF $10 41 (c) 514.22 [51.4224X 10] INSTALMENT OF $30 390.01 [13.0004 X 30] 42 AYMENT IN MONTHLY answer MORE PAYMENT IN MONTHLY INSTALMENTS OF $10 = 43 124.21 44 Z SCOREinsu pv fvcash opti LINE OF CREDITeoqmiler BANKER ACCEPTANC FACTOR SI DISC FOCAL 4 HSheet1Sheet2 CARD WC REQUIRE 130 % Re erences 05:09 ENG 23-06-2019 WA