Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I have this hw due in 1 hr and please solve ASAP! Thank you Suppose Olivia has $6,660 in credit card debt on the VB
I have this hw due in 1 hr and please solve ASAP! Thank you
Suppose Olivia has $6,660 in credit card debt on the VB credit card which has annual interest rate of 18.1%. Olivia is considering transferring her debt to the LA credit card that offers 0% interest for 18 months. (a) If Olivia makes a payment of $370 per month on the VB credit card, what will her balance be at the end of 18 months? Assume that no additional charges are made to the car (Suggestion: You are trying to find the future value of a debt that has a present value of $6,660. Use the formula for the future value of an ordinary annuity. Round your answ to the nearest cent.) $ 1162 X (b) If Olivia makes a payment of $370 per month on the LA credit card, what will her balance be at the end of 18 months? Assume that no additional charges are made to the card (Suggestion: None of the payment goes to interest on the debt. Round your answer to the nearest cent.) $ (c) How much lower is the balance due after 18 months on the LA credit card? Note: Some credit card companies may charge a transfer fee which will affect the benefit of a 0% introductory rate. Assume that there is not a transfer fee. (Round your answer to the nearest cent.) $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