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.
In discipline such as psychology, nativism tends to refer to the view or notion that certain or particular abilities or skills are hard-wired or native into brain at birth. This is further in contrast to the view of empiricism also known as the tabula rasa perspective, which refers to states that brain tends to have endowed with inborn skills for learning from its surroundings or environment .
Her comment is best on the hindsight bias. This type of bias
is known as the knew-it-all-along by which the after the event has occurred,
the person was able to determine and see the events or the individual were able
to predict the event that had occurred before it could even happen.
After she finished her speech, gail's classmate told her that she didn't appear nervous at all-while gail was sure the audience could see her hands shaking. this demonstrates the illusion of transparency.
