Question

Suppose that on January 1 you have a balance of $4700 on a credit card whose APR is 16%, which you want to pay off in 1 year. Assume that you make no addition al charges to the card after January 1 a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? a. The monthly payment is S (Do not round until the final answer. Then round the nearest cent as needed.) b. The total paid since January 1 is S (Use the answer from part (a) to find this answer. Round to the nearest cent as needed.) c. The percentage of the total paid that is interest is% (Use the answer from part (b) to find this answer. Round to one decimal place as needed.)

Answer 1

Ca) The monthly payment is P x APR PMT 1 C1-C1 APR cohere P 4,700, AR 167. 0.16,n12 and tel O16 4,700 PMT- 12 426.4 C1-C1416) $426-44 The monhly paymenr is 12 426-4 4 6) TOtal paic Since Januaiy 1 is 5, 117 22 The total paid sinca Tanuany 1 i g 5,117-22 percentage of the total paid that is interest is C) The 4100+ 5,117 22 19 7. 5117-22