Jerry has a credit card debt of $15,600 that he would like to reduce by applying $8,500 of his inheritance money to the balance.
In addition, he would like to modify his debt payment plan to pay off the remaining balance in 24 months rather than 60 months. His credit card has an APR of 18%. How much will these changes save Jerry in finance charges (interest)?
First we need to solve the finance charge without the changes. B = A (1 + ti) where t is the number of years, 60 months or 5years i is the interest rate per year, 18% or 0.18 A is the principal amount, %15,600 B is the amount after t years so, B =$15,600 ( 1 + 0.18 x 5 ) B = $15,600 ( 1 + 0.9 ) B= $15,600 (1.9) B= $29,640. The finance charge without the changes is $29,640(amount after 5 years) - $15,600(principal amount) = $14,040.
Applying the changes, the principal amount would be $15,600 - $8,500 = $7,100, the number of years will be 2 years (24 months)in equation B = $7,100 (1 + 0.18 x 2) B = $7,100 (1 + 0.36) B = $7,100 (1.36) B = $9,656, the finance charge with the changes is $9,656 - $7,100 = $2,556.
The changes Jerry made can save $14,040 - $2,556 = $11,484.
Crucially, this is only the case if everything else stays equal: so if the quality of the product stays the same and if the income of the buyers doesn't decrease.
Then with a lower prize, more items will be purchased - and less if the prize increases.
In June 2011, after pinning WWE Champion John Cena on Raw,[148] Rey Mysterio at Capitol Punishment,[149] and finally Alberto Del Rio again in a No. 1 contendership match all within one week, Punk revealed that his contract was to expire on July 17 at Money in the Bank and vowed to leave the company with the WWE Championship
They ate corn, vegetables such as beans and squash, potatoes, a tiny grain called quinoa were commonly grown by the Incas, a<span>vocados and tomatoes.</span>
