Question
Through poor financial management, Albert has amassed $900 000 in credit card debt.This card charges a 40% annual rate and compounds monthly.Albert plans to clear
Through poor financial management, Albert has amassed $900 000 in credit card debt.This card charges a 40% annual rate and compounds monthly.Albert plans to clear his balance over 3 years.
a) Using Excel, compute the monthly payment required to clear the debt within the projected period.
b) Using Excel, prepare the amortization spreadsheet (show formulas).
c) How much interest would Albert have paid at the end of two years?
d) What proportion of the 25th payment is interest?
e) What is the effective rate being charged by the card company?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
