What will the finance charges be on his credit card

Assignment Help Financial Management

Reference no: EM131306078

Finance Charges- Bill wants to purchase a new car for $45,000. Bill has no savings, so he needs to finance the entire purchase amount. With no down payment, the interest rate on the loan is 13% and the maturity of the loan is six years. His monthly payments will be $903.33. Bill's monthly net cash flows are $583.00. Bill also has a credit card with a $10,000 limit and an interest rate of 18%.

If Bill uses all of his net cash flows to make the monthly payments on the car, how much will he add each month to his credit card balance if he uses it to finance the remainder of the car?

What will the finance charges be on his credit card for the first two months that finance charges apply? (Assume that Bill makes no payments on his credit card.)

Reference no: EM131306078

Questions Cloud

Write literature review that captures relevant theories : write a page literature review that captures relevant theories and empirical research leading to a significant research topic, problem and research question(s). Approach your topic as though you were arguing for funding that might support a vital ..

What will tracys payments be : Beth has just borrowed $5,000 on a four-year loan at 8% simple interest. Complete the amortization table below for the first five months of the loan.

What is the efficiency of this datagram : What is the efficiency (ratio of the payload length to the total length) of this datagram?

How much interest would she have saved : If Sharon had been able to afford the four-year loan, how much interest would she have saved compared to the five-year loan?

What will the finance charges be on his credit card : If Bill uses all of his net cash flows to make the monthly payments on the car, how much will he add each month to his credit card balance if he uses it to finance the remainder of the car?

Create a report message to report error in an ip datagram : Explain why the Internet does not create a report message to report the error in an IP datagram that carries an ICMPv4 message.

Mary and marty interested in obtaining a home equity loan : What will their credit limit be if the bank bases their credit limit on equity invested and will loan them 70% of the equity?

Why are there no extra fields : Discuss how the ICMPv4 router solicitation message can also be used for agent solicitation. Why are there no extra fields?

What will mary and martys credit limit : What will Mary and Marty's credit limit be if the bank uses the market value of equity to determine their credit limit and will loan them 70% of the equity?

User Account

All Pages