How many months will it be before he pays off the card

Assignment Help Financial Management

Reference no: EM132053145

Simon recently received a credit card with an 17% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $390. The minimum payment on the card is only $10 per month.

A. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest month. month(s)

B. If Simon makes monthly payments of $30, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest month. month(s)

C. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent. $

Reference no: EM132053145

Questions Cloud

What will be monthly loan payment : What will be the monthly loan payment? What will be the loan's EAR?

Treasury desk should take in order to hedge against risk : Explain the risk faced by your bank in the spot market and determine the futures position that the Treasury desk should take in order to hedge against this risk

The largest monthly payment you can afford : The largest monthly payment you can afford is $450. The loan will have a 12% APR based on end-of-month payments.

What would its present value be : If interest rates doubled to 14%, what would its present value be?

How many months will it be before he pays off the card : If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card?

Compute realized rate of return for investor : Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

What was charge for depreciation and amortization : It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

When it should abandon oil field : An oil producer is trying to decide if and when it should abandon an oil field.

What is debt-to-capital ratio : The firm's total capital is $135 million and it finances with only debt and common equity. What is its debt-to-capital ratio?

User Account

All Pages