13. You have a $3,500 credit card balance and the credit card company charges 12 pe interest annually. How many years would it take to pay down the entire balance if month you make an $80 payment? A. 4.8 years B. 5.8 years C. 12.3 years D. 57.8 years E. 70.0 years Answer:
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?1. You have $2,500 on a credit card that charges a 19% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? 2. Suppose you want to have $300,000 for retirement in 25 years. Your account earns 5% interest. How much would you need to deposit in the account each month?4. Consider a credit card with a balance of $7000. You wish to pay off the credit card, which has an APR of 17.99%, within 1 year. Calculate the following. Round your answer to the nearest cent, if necessary. a. Find the number of months you will need to pay the credit card if you pay $585 per month. b. Will you meet your goal and have the credit card paid in one year?
- You are planning on buying a new car. You need to finance $32,500 for the purchase. The bank will lend you the money at 6.60% (compounded monthly) over five years. What are the monthly payments on the loan? O $2,192.37 O $833.55 O $637.42 $7,841.74 O $653.48You want to save $1,000 a month for the next 10 years to buy a townhome The money will be set aside in an account that pays 10% percent interest compounded monthly. The first deposit is made today. Instead, if you decided to borrow an equivalent lump sum today, how much do you need to borrow today? A) $76,301.76 B) $84,512.63 C) $108,000.00 D) $120,000.00 E) $132,000.00You are looking to buy a car that costs $15,000. Your bank has told you that they will give a five year loan with an APR of 5% that compounds monthly. What is your monthly payment? $304 $299 $256 $283
- 2. Suppose you have a bank account into which you make $100 deposits each month. You find a bank account paying r 100% (r is a decimal rate) per month. You would like to save up for a $2,000 car down payment, which you would like to have in 15 months. What must the bank account pay in order for this to be accomplished?ery am Proctor Suppose you want to buy a $146,000 home. You found a bank that offers a 30-year loan at 5.3 % APR. What will be your monthly payment? (Round to the nearest cent.) 644.04 How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) Question Help: Video Message instructor Submit Question1. Find FV: You have $2,000 in a savings account that earns 1.5% interest per year. What will be the balance in your account: in one year? in five years? in ten years? 2. Find r: You have $2,000 in a money market account. If you make no deposits to or withdrawals from this account, in 10 years you will have: $10,000 in this account if the account's interest rate is $20,000 in this account if the account's interest rate is
- You buy a car costing $28,000 today. What will be the monthly payment on this car if you put no money down (i.e., you borrow/finance the full amount), and the rate of interest on the loan is 7.2%? The loan is to be paid back in equal monthly installments over the next 5 years, with the first payment due one month from the purchase date. $395.54 $500.12 $475.38 $557.08 $484.95You have $4,500 on a credit card that charges a 16% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)? $ each month4. You want able to withdraw 15,000 each month for 15 years. your account earns 3 1/4% interest. a. how much do you need in your account at the beginning? b. how much total money will you pull out of the account? c. How much of that money is interest?