Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Simon recently received a credit card with a 2 1 % nominal interest rate. With the card, he purchased an Apple iPhone 7 for $

Simon recently received a credit card with a 21% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $358.32. The minimum payment on the card is only $10 per month.
a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest whole number.
month(s)
b. If Simon makes monthly payments of $35, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest whole number.
month(s)
c. How much more in total payments will Simon make under the $10-a- month plan than under the $35-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent. $
image text in transcribed

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

Public Finance

Authors: Harvey Rosen, Ted Gayer

10th edition

9781259716874, 78021685, 1259716872, 978-0078021688

More Books

Students also viewed these Finance questions

Question

=+ 4. How can policymakers infl uence a nations saving rate?

Answered: 1 week ago