3. (8 points) A credit card offer you got in the mail advertises an APR of...
You have credit card debt of $30,000 that has an APR (monthly compounding) of 18%. Each month you pay the minimum monthly payment. 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 9%. 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 well....
You have credit card debt of $30,000 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...
Credit Card Debt DUE MARCH 1ST MaX 4 peaple) Recently you got in the mail an AMAZING! offer for a credit card, no credic check required! The card offered a low low interest rate of only 2% per month with a maximum of $2,000 with a low minimum payment of 1% the total amount owed. A month after filling out the form you recieved your shiney new credit card in the mail. You took your card out for a spin...
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,...
Assume that you have just got your new credit card. The APR is 21.99% compounded daily. If you spend 1,000 using this credit card. How much will you have to pay in 1 year to settle your account. How much interest rate would you have effectively paid?
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...
Your best friend consults you for investment advice. You learn that his tax rate is 38%, and he has the following current investments and debts:• A car loan with an outstanding balance of $5,000 and a 4.79 APR (monthly compounding)• Credit cards with an outstanding balance of $10,000 and a 14.94%APR (monthly compounding)• A regular savings account with a $30,000 balance, paying a 5.44% effective annual rate (EAR)• A money market savings account with a $100,000 balance, paying a 5.25% APR (daily compounding)• A tax-deductible home...
7) A bank offers a credit card with an APR of 18 percent, with quaterly compounding. What is the effective annual rate (EAR)? 8)Which of the following investments will attain the highest future value? a) $1,300 invested at an annual interest rate of 6% for 12 years b) $1,500 invested at an interest rate of 4.75% (monthly compounding) for 10 years c) $1,300 invested at an interest rate of 3.25% (quaterly compunding) for 10 years 9)All other things held equal,...
A credit card company quotes you an APR of 18.90%. What is the actual rate of interest you are paying if interest is computed quarterly? A) 18.90% B) 19.21% C) 20.63% D) 20.28% E) 20.64%
susan and Joe would like you to help them address some of their short term financial goals. Currently they carry three credit cards and would like you to help them prioritize their debt. 1. They would would like to pay off all their credit card debt within the 18 months. A. how much do they have to pay monthly to fulfill their goal (for each card)? Mastercard Visa Discover b. which credit card should they start paying off first? Why?...