How much would jim have to pay at the end of the year

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Reference no: EM131975859

Eagles fan Jim bet $10,000 on the Eagles to win out right in Super Bowl 39. When his bookie, Ice Pick Tony, came to collect Jim didn't have the money. Jim was a senior at Temple, and had a job offer with Boeing. His bookie agreed not to break his legs if he would repay the $10,000 with interest in 12 months time. The bookie said his interest rate was 7.93% per month.

a. How much would Jim have to pay at the end of the year? $ ______

Jim was shocked by the amount that he would owe and begged Tony to reconsider. Tony offered 5.02% per month, with uniform monthly payments starting in one month.

b. If Jim choose this option what would his monthly payments be? $ ______

Jim thought the payment plan was better, but he still didn't have any way to make money before graduation in May. Trying to shake his "Ice Pick" nickname, Tony agreed to allow Jim to make 12 equal monthly payments at the monthly (edited from lower) rate beginning in June, four months from the day of the debt obligation. Jim agreed to this.

c. What payments did he make? $ ______

Reference no: EM131975859

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