Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Recently, you made multiple large purchases on your credit card totaling $17,400. The interest rate on your credit card is 15.2% per year, compounded monthly,

image text in transcribed
Recently, you made multiple large purchases on your credit card totaling $17,400. The interest rate on your credit card is 15.2% per year, compounded monthly, and your statement says your minimum payment is $280 per month. (a) How many minimum payments will you need to make in order to pay off your purchases, assuming you cut up your credit card and do not make any additional purchases? (Round your answer up to the nearest number of payments.) You will need minimum payments. (b) How much total interest (in dollars) will you pay by making the minimum monthly payment? (Round your answer to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Inventory

Authors: Steven M. Bragg

4th Edition

1642210714, 9781642210712

More Books

Students also viewed these Accounting questions