Kent is trying to pay off his $13,000 credit card debt. He can only afford to pay $400 monthly. a. How many months will it take him to pay off the debt, if the credit card company was not charging him

interest?

b. Back on Planet Earth, where credit card companies do charge interest, will it take Kent longer, shorter

same amount of time to pay off the debt?

c. With 24% interest, how many months will it take him to pay off the credit card debt?

2. Larissa found a house of her dreams. She will need to borrow $500,000 in order to buy it. Her mortgage brokert

her the best interest rate on a 30-year mortgage she can qualify for is 4.4%. She can afford to pay no more than $2,300 per month

a. Can Larissa afford the mortgage?

b. What is the maximum amount Larissa can afford to borrow with a 30-year mortgage?

3. Ravi is trying to choose one of four different investments yielding 4%, 5%, 6% or 7%. He wants to put $15,000 int one of these investments with the intention of withdrawing $18,000 after 4 years in order to buy a car.

a. Which is the lowest yielding investment that can help Ravi meet his goal?

b. If Ravi puts the money into the investment you chose in (a), how much will he be able to withdraw?