111. Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded

Question:

111. Suppose you owe $1,100 on your credit card.

The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $19.80. (4.15)

a. If you make only this minimum payment, how long will it take for you to repay the $1,100 balance

(assuming no more charges are made)?

b. If you make the minimum payment plus $10 extra each month (for a total of $29.80), how long will it take to repay the $1,100 balance?

c. Compare the total interest paid in Part

(a) with the total interest paid in Part (b).

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Engineering Economy

ISBN: 9781292265001

17th Global Edition

Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling

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Question Posted: Oct 25, 2024 10:11 AM

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111. Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded

Question:

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Engineering Economy

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