How your friend could manage his finances more sensibly

Reference no: EM131916152

Problem

You have a friend who runs up a balance on his credit card by buying new furniture to replace the furniture he has. The interest rate on the balance is 15 percent per month. The furniture store offers a layaway plan with monthly payments equivalent to an interest rate of 10 percent per month. Explain to your friend how he could manage his finances more sensibly.

Reference no: EM131916152

Questions Cloud

What are the respective rent increases from last year : What are the respective rent increases from last year to this year, frhom this year to next year and the amount of rent payable each monthduring.

What is its modified duration : What is the % change in bond price if the yield of the bond changes from 6% to 6.1%? Compare this to the change approximated by the modified duration.

Why might vicki have the given preference : Dora and Vicki are bartenders. Dora prefers her tips in cash because she can have the money right away. Why might Vicki have this preference?

What was the cpi to the nearest tenth in 1950 : If a school bus cost $4100 in 1950, and if the price of a school bus increased at the same rate as the CPI from 1950 to 1984.

How your friend could manage his finances more sensibly : You have a friend who runs up a balance on his credit card by buying new furniture. Explain to your friend how he could manage his finances more sensibly.

What is the effective annual rate of this credit card : How long would it take you (how many payments and how many years) to pay off a credit card with an APR of 17.9 percent if you borrowed $2,025.

What have you done to accomplish the goals : Describe a situation from your own experience in which you are time inconsistent. What have you done to accomplish the goals of your future-oriented self?

What is the favorable annual equivalent costs : The new pump/motor set costs $30,000.00 with a 3 year useful life and a $11,000.00 salvage value. It's O&M costs are $3,000.00 per year.

How much has the investor lost in yen terms : When the investor went to sell the building 5 years later, in early 1995, the exchange rate was 85 yen/$ and the property's value had decreased to $800 million.

User Account

All Pages