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

Assignment Help Financial Management

Reference no: EM13883233

Paying off credit cards Simon recently received a credit card with an 13% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $400. 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? Round your answer to the nearest whole. month(s)

b) If Simon makes monthly payments of $30, how many months will it be before he pays off the debt? Round your answer to the nearest whole. 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. Make sure you use 3 decimal places for N. Round your answer to the nearest cent.

Reference no: EM13883233

Questions Cloud

Well-diversified portfolio that has an expected return : You are an investor in common stock, and you currently hold a well-diversified portfolio that has an expected return of 10%, a beta of 1.2, and a total value of $12,000. You plan to increase your portfolio by buying 1,000 shares of X at $15 a share. ..

What is the current price of kleins common stock : The last dividend paid by Klein Company was $2.00. Klein’s growth rate is expected to be a constant 4 percent for 2 years, after which dividends are expected to grow at a rate of 6 percent forever. Klein’s required rate of return on equity (ks) is 8 ..

Personal automobile policy : Raman Patel has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. Raman loses control an..

Max starts making deposits into fund continuously : Max starts making deposits into a fund continuously at a rate of (19-2t). He will be making deposits until time t=7. This fund credits a force of interest of 2.1%. Calculate the present value of this fund two ways: one method should use an Increasing..

How many months will it be before he pays off the card : Paying off credit cards Simon recently received a credit card with an 13% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $400. The minimum payment on the card is only $10 per month. If Simon makes the minimum monthly payment..

Various school and living expenses : Pete Morton is planning to go to graduate school in a program of study that will take 3 years. Pete wants to have $16600 available each year for various school and living expenses. If he earns 6 percent on his money, how much must be deposit at the s..

Standard deviation-create your optimal complete portfolio : Stock A has a standard deviation equal to 20% and an expected return of 11%. Stock B has a standard deviation equal to 25% and an expected return of 14%. The correlation coefficient of the returns on Stock A and Stock B is 50%. How much must you inve..

What is the yield to maturity on flps bond : Flp has 7% annual coupon bonds outstanding with 30 years let until maturity. The bonds have a face value of 1,000 and their current market price is 1,145.92. What is the yield to maturity on flp's bond?

Issues zero coupon bonds on the market at price : Atlantis Fisheries issues zero coupon bonds on the market at a price of $415 per bond. Each bond has a face value of $1,000 payable at maturity in 17 years. What is the yield to maturity for these bonds?

User Account

All Pages