Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scenario # 1 -MasterCard MasterCard sent you a fabulous new credit card offer in the mail. It is a special card with really low

image text in transcribed

Scenario # 1 -MasterCard MasterCard sent you a fabulous new credit card offer in the mail. It is a special card with really low minimum monthly payment percent of 4%. In exchange for the low minimum monthly payment percent, MasterCard raised your APR to 18%. Fill out the chart and determine the amount of money you spent and your remaining balance. $1000 x .04= 1000-40= 960X.18 960+1729 Month Balance (Hint: This is last month's final balance) New Total Money Spent this Month (Balance +Money Spent) Minimum Payment Percent Actual Minimum Remaining Balance Payment (New Total *MPP) (New Total - Minimum Payment) Amount of Interest ($) (Remaining Final Monthly Balance (Remaining Balance APR Balance *APR) +interest) January $1,000.00 $1,000.00 4% $ 40 960 18% #172.80 $1132.80 February 1132.80 $0.00 1132.80 4% #43.31 $ 1087.49 18% 195.75 1283.24 4% March 1283.24 $0.00 1283.24 $31.33 #1231.91 18% 221.74 1453.65 4% April 1453.65 $1 $0.00 1453.6% 58.15 18% 4% 18% May $0.00 4% 18% June $0.00 4% 18% July $0.00 4% 18% August $0.00 4% 18% September $0.00 4% 18% October $0.00 4% 18% November $0.00 4% 18% December $0.00 Add all minimum payments together to find out how much you have paid so far. Put this answer in the box to the right.

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

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Edition

0135811600, 978-0135811603

More Books

Students also viewed these Finance questions