1.Brooke’s credit card has an annual interest rate of 21% on her unpaid balance, which averages $900. (a) Find the monthly interest payment in dollars. Assume that monthly interest rates are 1/12 of the annual interest rates. (b) Brooke wants to pay off her credit card debt with payments of $100 per month until it is paidoff. Complete the shaded entries in the chart below. (When her balance is below $100, her final payment will be the balance due.) Month Intrest Payment Balance 0 $900.00 1 900 x 0.21/12=$15.75 $100.00 900+15.75-100=$815.75 2 815.75 x 0.21/12=$14.28 $100.00 815.75+14.28-100=$730.03 3 $100.00 4 $100.00 5 $100.00 6 $100.00 7 $100.00 8 $100.00 9 $100.00 10 Totals
1.Brooke’s credit card has an annual interest rate of 21% on her unpaid balance, which averages $900. (a) Find the monthly interest payment in dollars. Assume that monthly interest rates are 1/12 of the annual interest rates. (b) Brooke wants to pay off her credit card debt with payments of $100 per month until it is paidoff. Complete the shaded entries in the chart below. (When her balance is below $100, her final payment will be the balance due.) Month Intrest Payment Balance 0 $900.00 1 900 x 0.21/12=$15.75 $100.00 900+15.75-100=$815.75 2 815.75 x 0.21/12=$14.28 $100.00 815.75+14.28-100=$730.03 3 $100.00 4 $100.00 5 $100.00 6 $100.00 7 $100.00 8 $100.00 9 $100.00 10 Totals
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1.Brooke’s credit card has an annual interest rate of 21% on her unpaid balance, which averages $900.
(a) Find the monthly interest payment in dollars. Assume that monthly interest rates are 1/12 of the annual interest rates.
(b) Brooke wants to pay off her credit card debt with payments of $100 per month until it is paidoff. Complete the shaded entries in the chart below. (When her balance is below $100, her final payment will be the balance due.)
| Month | Intrest | Payment | Balance |
| 0 | $900.00 | ||
| 1 | 900 x 0.21/12=$15.75 | $100.00 | 900+15.75-100=$815.75 |
| 2 | 815.75 x 0.21/12=$14.28 | $100.00 | 815.75+14.28-100=$730.03 |
| 3 | $100.00 | ||
| 4 | $100.00 | ||
| 5 | $100.00 | ||
| 6 | $100.00 | ||
| 7 | $100.00 | ||
| 8 | $100.00 | ||
| 9 | $100.00 | ||
| 10 | |||
| Totals |
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