YOU HAVE A BALANCE OF $5,000 WITH A MINIMAL PAYMENT OF $50, WITH PAYING AN INTEREST...

Question

Question

YOU HAVE A BALANCE OF $5,000 WITH A MINIMAL PAYMENT OF $50, WITH PAYING AN INTEREST...

YOU HAVE A BALANCE OF $5,000 WITH A MINIMAL PAYMENT OF $50, WITH PAYING AN INTEREST OF 10%, WHEN WILL YOU PAY IT OFF?

CHOICES OF INTEREST:

•Simple Interest Rate

•Quarterly Interest Rate

•Monthly Interest Payment

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Simple interest rate

when interest rate is compounded then higher the compounding times higher is the interest rate.

Thus simple interest rate is the lowest compared to compounding quarterly or monthly.

Thus interest rate is lowest in simple interest rate

when you have to pay then you will choose the lowest rate I.e. Simple interest rate

Add a comment

Answer 2

Similar Homework Help Questions

YOU HAVE A BALANCE OF $5,000 WITH A MINIMAL PAYMENT OF $50, WITH PAYING AN INTEREST...

YOU HAVE A BALANCE OF $5,000 WITH A MINIMAL PAYMENT OF $50, WITH PAYING AN INTEREST OF 10%, WHEN WILL YOU PAY IT OFF?
10)You have a few credit cards that you are currently paying the minimum payment on, which...

10)You have a few credit cards that you are currently paying the minimum payment on, which have high interest rates. You cannot pay it all off before the end of the month and as a result have only been paying the minimum. Recently you receive an offer for 0% balance transfer and think it is a good idea to transfer your balances from the various different cards in order to pay it off faster without any more interest or finance...
Paolo is paying off a credit card with a current balance of $450. The interest rate...

Paolo is paying off a credit card with a current balance of $450. The interest rate on the card is 23%. The minimum monthly payment is $25, but he plans to make monthly payments of $45. He will not be using the card to accumulate further debt. Approximately how many months will it take to pay off the balance?

10.You have the alternative of paying for university fees today for a payment of $15,000 or,...

10.You have the alternative of paying for university fees today for a payment of $15,000 or, you can select a payment plan where you pay $8,000 in 6 months from today and another $12,000 in exactly 18 months from today. If the interest rate is 9.9%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment?
Assume you have a credit card that has an interest rate of 24% APR, compounded monthly....

Assume you have a credit card that has an interest rate of 24% APR, compounded monthly. Assume you have a credit balance of $5,000. What would your monthly payment need to be to pay off the balance in 3 years?
You have an $1,000 balance on your credit card, the payment on the card is $20...

You have an $1,000 balance on your credit card, the payment on the card is $20 per month, if monthly interest rate is 1.5%, then how long does it take to pay off the balance on the card?

A. What would be your monthly mortgage payment if you pay for a $250,000

4. A. What would be your monthly mortgage payment if you pay for a $250,000 home by making a 20% down payment and then take out a 3.74% thirty year fixed rate mortgage loan where interest is compounded monthly to cover the remaining balance. All work must be shown justifying the following answers. Mortgage payment = B. How much total interest would you have to pay over the entire life of the loan. Total interest paid = C. Suppose you inherit some money and...
You have the alternative of paying for university fees today for a payment of $15,000 or,...

You have the alternative of paying for university fees today for a payment of $15,000 or, you can select a payment plan where you pay $8,000 in 10 months from today and another $9,000 in exactly 18 months from today. If the interest rate is 7.0%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if...
You have a credit card with a 14% APR, compounded monthly, and a $18,000 balance. You...

You have a credit card with a 14% APR, compounded monthly, and a $18,000 balance. You plan to pay off the entire balance by making quarterly payments for 9 years. a. What is the effective quarterly interest rate? b. How much do you pay per quarter? c. Over the 9 years, how much total interest have you paid? a. What is the effective quarterly interest rate? b. How much do you pay per quarter? c. Over the 9 years, how...

Suppose you are two years into a 30-year mortgage at 4.125%. Your minimal monthly payment is $710...

Suppose you are two years into a 30-year mortgage at 4.125%. Your minimal monthly payment is $710.79 and your remaining balance on the loan is $141,500. You've been offered a deal to refinance to a 15 year mortgage at 3.125% with no closing costs. To determine if you should refinance, answer the following. (A) What is the monthly payment on a 15 year mortgage for $141,500 at 3.125% interest? (B) If you were to make the minimum monthly payments on...

YOU HAVE A BALANCE OF $5,000 WITH A MINIMAL PAYMENT OF $50, WITH PAYING AN INTEREST...

Homework Answers

Add Answer to:
YOU HAVE A BALANCE OF $5,000 WITH A MINIMAL PAYMENT OF $50, WITH PAYING AN INTEREST...

Post as a guest

Earn Coins