Question
You currently owe $1400 on your credit card that charges 15% APR compounded monthly. You can pay this off in 12 months or pay it
You currently owe $1400 on your credit card that charges 15% APR compounded monthly. You can pay this off in 12 months or pay it off all at once today. If you pay it off today, how much do you save in present value terms if your savings account earns 2% APR compounded monthly? Round your answer to the nearest dollar.
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Mathematical Finance Core Theory Problems And Statistical Algorithms
Authors: Nikolai Dokuchaev
1st Edition
0415414482, 978-0415414487
