How long would it take you pay off the balance on new card

Assignment Help Financial Management
Reference no: EM131020923

You have a $10,000 balance and your card charges 17.9% interest (charged monthly).

How many months will it take to pay off the debt if you only make the $200 minimum payment each month?

(Do not round your answer)

All is not lost, because you just received an offer to transfer your $10,000 balance from your current credit card to a new credit card charging a rate of 8.9% monthly. Assume you make no additional purchases with the card. If there is a 4% balance transfer fee and you continue to make $200 monthly payments, how long would it take you pay off the balance on the new card?

Reference no: EM131020923

Questions Cloud

New heritage doll company case-harvard business review : What additional information does Harris need to complete her analyses and compare the two projects? What specific questions should she ask each of the project sponsors?
When evaluating the financial statements of a given firm : It is often said that anyone with a pencil can calculate financial ratios, but it takes a brain to interpret them. What kinds of things should the analyst keep in mind when evaluating the financial statements of a given firm?
Difficulties of obtaining accurate information : Do you think that this fraction is close to the actual proportion who cheated? Why? (Discuss the difficulties of obtaining accurate information on a question of this type.)
Write down the estimated regression model : Estimate and write down a regression model predicting the heart disease death rate based on the percent of smokers (X1) and state median household income (X2).
How long would it take you pay off the balance on new card : How many months will it take to pay off the debt if you only make the $200 minimum payment each month? All is not lost, because you just received an offer to transfer your $10,000 balance from your current credit card to a new credit card charging a ..
Two different bonds currently outstanding : Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. The bond makes no payments for the first 6 years, then pays $1,100 every six months over the subsequent eight years, and fi..
Which people change their behavior after they get insurance : The situation in which people change their behavior after they get insurance (illustrated by the above scenario) because the change benefits them but increases costs to the insurer is called
Has the writer followed all instructions for the assignment : Is the work honest and "relatable?" Does it employ a conversational tone and make use of narrative devices, such as dialogue, scene construction, and characterization? Does it address Lopate's notions of egotism and contrariety?
Identified an investment project with cash flows : Conoly Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 870 2 1,230 3 1,490 4 1,650 If the discount rate is 10 percent, what is the present value of these cash flows? If the discount rate is 20 percent, what ..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cost of the preferred stock-including flotation

Cost of Preferred Stock Including Flotation Trivoli Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $115.00; but flotation costs will be 8% of the market price, so the net price will be ..

  The cash flows are expected to last forever

You are considering opening a new plant. The plant will cost $35 million upfront and will take two years to build. After that, it is expected to produce net cash flows of $5 million at the end of every year of production. The cash flows are expected ..

  Stocks dividend is expected to grow at constant rate

If a stock’s dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock is in equilibrium.

  What is the value of the preferred stock

Stephen and Chris are also looking at issuing preferred and common stock to further expand TechU's businesses. Instead of common stock, TechU is also looking at issuing preferred stock so Stephen Jobs can retain close ownership in the company. The pr..

  What is the company cost of equity

The Down and Out Co. just issued a dividend of $2.96 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $50 a share, what is the company's cost of ..

  What is the yield to maturity

STF Corporation issued 15 year, par $1000 bonds 10 years ago at a coupon rate of 5%. The bonds make semi annual payments. If these bonds currently sell for 90% of par value, what is the Yield To Maturity (YTM)? Please show your work.

  Assume that sales are not affected by the tighter credit

Weir Incorporated has sales of $200,000 and accounts receivable of $18,500. You can easily show that its DSO is well over the industry average of 27 days. Suppose that it speeds up collection, matches the industry average, and manages to earn 8% inte..

  What is the implied risk-free rate

The prices of European call and put options on a non-dividend-paying stock with 12 months to maturity, a strike price of $120, and an expiration date in 12 months are $20 and $5, respectively. The current stock price is $130. What is the implied risk..

  The securitys marketability and liquidity

What is an IPO, and what role does an investment banker play in the process? Suppose you own a security that you know can be easily sold in the secondary market, but the security will sell at a lower price than you paid for it. What would this mean f..

  A loan is offered with monthly payments

A loan is offered with monthly payments and a 8.75 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

  Problem leverage-long-term debt-equity ratio

A firm has a long-term debt-equity ratio of .4. Shareholders’ equity is $1 million. Current assets are $200,000, and the current ratio is 2. The only current liabilities are notes payable. What is the total debt ratio?

  Describe how society''s interests can influence financial

Compare and contrast the potential liability of owners of proprietorships, partnerships (general partners), and corporations.

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