Question
After landing your dream job you are very excited at the prospect of a $55,000 per year job. You promptly max out your credit card
After landing your dream job you are very excited at the prospect of a $55,000 per year job. You promptly max out your credit card on shopping and carbonated malt beverages. Your American MasterVisa has the low interest rate of 19% compounded monthly.
a) If you have a credit card debt of $17,500 and you make the minimum repayment of $300/month, how long will it take to repay the credit card company? What is the moral of this story?
b) What is the nominal interest rate charged by the credit company?
c) What is the effective interest rate charged by the credit company?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Basics Of Public Budgeting And Financial Management
Authors: Charles E. Menifield
4th Edition
0761872116, 978-0761872115
