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Schach [20]
3 years ago
7

The annual interest rate on a credit card is 13.99​%. If a payment of ​$400.00 is made each​ month, how many months will it take

to pay off an unpaid balance of ​$2 comma 455.44​? Assume that no new purchases are made with the credit card.
Business
1 answer:
romanna [79]3 years ago
5 0

Answer:

There will be 7 months of repayment for fully paying-off the outstanding amount.

Explanation:

We apply the present value formula to calculate the number of month it takes to paid off the outstanding amount.

We have:

Monthly payment = $400; Discounting period = number of months needs to paid off the amount; Discount rate = 13.99%/12

So, we have: 2,455.44 = [400/(13.99%/12)] x [1 - (1+13.99%/12)^(-n)] <=> [1 - (1+13.99%/12)^(-n)] = 0.071566 <=> (1+13.99%/12)^(-n) = 0.928434 =  <=> n = 6.4

=> There will be 7 months of repayment for fully paying-off the outstanding amount.

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2 years ago
The __________ is a graphical representation of the term structure of interest rates.
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This is a yield curve
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3 years ago
The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing t
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Option B Depreciation expense

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8 0
3 years ago
Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insuran
raketka [301]

Answer:

$8,200

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The amount of asset that is not covered under the insurance policy would not be claimable so if the amount of insurance policy that covers jewelry of worth $1000 and silverware of worth $2,500 then the total claimable insurance would be $3500 ($1000 for both Jewelry and $2500 for silverware).

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3 years ago
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