Makes minimum monthly payment and makes other charges

Assignment Help Financial Management
Reference no: EM13894202

Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month.

a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card. Round to the nearest month.

b. If Simon makes monthly payment of $30, how many months will it be before he pays off the card. Round to the nearest month.

c. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan? Make sure you use three decimal places for N.

Reference no: EM13894202

Questions Cloud

Use the bootstrap method to calculate all zero rates : The price of a 1-year zero is $96.00, the price of a 2-year 10% coupon bond is $107.30 and the price of a 3-year 8% coupon bond is $102.25. Use the bootstrap method to calculate all zero rates.
What is the dollar amount of each payment jan receive : Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 10% nominal interest rate, but it calls for semiannual payments beginning next June 30. What is the dollar amount of each payment Jan rec..
Currently uses zero-debt financing : Seattle Health Plans currently uses zero-debt financing. Its operating income (EBIT) is $1 million, and it pays taxes at a 40 percent rate. It has $5 million in assets and, because it is all-equity financed, $5 million in equity.
Values using the equations and then financial calculator : Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually.
Makes minimum monthly payment and makes other charges : Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month. If Simon makes the minimum monthly payment and makes no other charg..
Find the present values of these ordinary annuities : Find the present values of these ordinary annuities. Discounting occurs once a year. a. $400 per year for 10 years at 10%.
What was charge for depreciation and amortization : Little Book Company recently reported an EBITDA of $5 million and net income of $1.2 million. It had $1 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
What is the MUC of dumping a half ton load of waste : A local landfill currently charges $100 per half ton load of waste to dump. The marginal costs to the landfill of operating the dump are about $60 per half ton load of waste. Assuming the landfill pricing is dynamically efficient, what is the MUC of ..

Reviews

Write a Review

Financial Management Questions & Answers

  Theory and applications when estimating wacc

What is the biggest gap between theory and applications when estimating WACC? And in your opinion, what are the key reasons to form such a big gap?

  Navigation systems inc now has total worldwide revenues of

navigation systems inc. now has total worldwide revenues of over 500 million forecast for this coming year. you have

  Explain bmws claim that under the new bonus program

Explain BMW's claim that under the new bonus program, "upper-level management could potentially lose more money than their lower-level counterparts for bad performance."

  Write down the advantages of investing through a mutual fund

Write down the advantages of investing through a mutual fund.  Write a note on ‘Load structure'. Discuss rights of an investors in mutual fund.

  What is a business plan

Explain how the idea of a brewing device for a small apartment became a startup enterprise. What did you learn from that bit of entrepreneurial history

  Compute the milners child and dependent care credit

Bud and Katie Milner file a joint return. During the year, they paid $11,000 to their nanny to look after their three children, ages 2, 9, and 11. Bud and Katie both work and earned $24,000 and $31,000, respectively. Compute the Milners' child and de..

  What is the market risk premium

What is the Market Risk Premium (MRP)? Assume the following: Expected market return 9.62% (long-term US stock GAR), risk-free rate 2% (recent 10-yr Treasury yield).

  What is its yield to maturity

Consider a 6-year 8-percent bond purchased at a price of $950.What is its yield to maturity? What is the realized yield if the coupon reinvestment rates are: 12% (today), 8% (in one year), 5% (in two years), 11% (in three years), 9% (in four years), ..

  You are a data analyst with john and sons company the

you are a data analyst with john and sons company. the company has a large number of manufacturing plants in the united

  How much will you meet your goal

You estimate you can fund your 401(k) about $10,000 a year. Your 401(k) is estimated to earn about 6.57% a year. You plan to retire in 30 years and want $1,000,000 in your 401(k). About how much will be in your 401(k) and will you meet your goal?

  How much does she need to place in a saving account today

Camila plans to go for vacation to Australia in 11 years from now. She estimates that she will need $26,222 for the trip. How much does she need to place in a saving account today that earns 5.12 percent per year (compounded quarterly) to accumulate ..

  What annual rate of return does this represent

Against your advice, your little brother bought a Nolan Ryan rookie baseball card nine years ago for $250. Today the same card is selling for $2,700. What annual rate of return does this represent?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd