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?
Duration of loan=n=3*12=36 months
Rate of interest=i=24%/12=2% per month
Loan amount=PV=$5000
Monthly payment=PV*(A/P,0.02,36)=5000*(A/P,0.02,36)
Let us calculate the interest factor
Monthly payment=5000*0.03923285=$196.16
Assume you have a credit card that has an interest rate of 24% APR, compounded monthly....
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You have credit card debt of $ 30 comma 000 that has an APR (monthly compounding) of 17 %. Each month you pay the minimum monthly payment only. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 11 %. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card,...
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