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Lostsunrise [7]
4 years ago
7

With a beginning balance of $2500 and no additional charges, there is no grace-period, you will just pay the minimum payment eac

h month for the next year. The APR is 24.99% and the minimum payment each month is 8% of the balance. Determine the finance charge, new balance, and minimum payment required for each of the next year, and the starting balance for month 13:
a. What is the total of the minimum payments?
b. What is the total of the finance charges?
c. How much does the starting balance decrease after one year of payments?
d. The total of your finance charges is what percent of your total payments?
e. Explain why making the minimum payment all the time is great for the credit card company, but not so great for the user.
Mathematics
1 answer:
valkas [14]4 years ago
7 0

Answer:

a = $31.23 per month

b = $20.83 per month

c = 249.98 = $249.98 interest charges

                   = $624-249.98 = 374.02 profit part decrease 8% inc.                  

d = 35.35%

e = Answer is in the name; basic payment is a contract which means whilst account remains open charges are requested without fail. Should balance be less or on zero, charges are still applied.

Step-by-step explanation:

2500 x 1.2499 = interest only for start month 13 =3124.75

3124.75/ 100 x 1.08   = 8% of this = 249.98 each year.

We only have to divide each by 12 to work out monthly individual charges and subtract to find out payments.

3124.75 - 249.98 = 2874.77 = Total after charges each year.

249.98/12 = 20.83 = monthly charges.

3124.75- 2500 = 624.75 payments each year

624.75/12 = 52.06 month 1 payment before charge

52.06-20.83 =31.23 total minimum payment

2500 + 249.98

Percentage = 200:600 = 1/3 33% + (comparing to ratio 10:25 closer to 40%)

We find ratio 200:600= 33.33 + 49.995/24.75 = 2.02

33+2.02 = 35.35%

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If a child is randomly selected from Columbus elementary school, what is the probability that the child will be a boy?
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G+35 -3G=25

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So then the correct option would be:

C. BOTH statements 1 and 2 TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient.

Step-by-step explanation:

Assuming the following options:

A. Statement 1 ALONE is sufficient to answer the question, but statement 2 alone is NOT sufficient.

B. Statement 2 ALONE is sufficient to answer the question, but statement 1 alone is NOT sufficient.

C. BOTH statements 1 and 2 TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient.

D. Each statement ALONE is sufficient to answer the question.

E. Statement 1 and 2 TOGETHER are NOT sufficient to answer the question.

Notation

Let B the event that we select a boy and G the event that we select a girl.

We are interested in find the probability of being boy, on math would be:

P(B) = \frac{B}{B+G}

From condition (1) we can do this:

\frac{B-25}{(B-25)+G} = 0.75 =\frac{3}{4}

4B - 100 = 3B -75 +3G

B -3G = 25    (1)

As we can see we have two unknown and we can't solve the system.

Now from condition (2) we can do this:

B= G+35  (2)

We see that condition (2) alone is not enouch to solve the problem.

And we need both conditions in order to solve the problem. If we replace equation (2) into equation (1) we got this:

G+35 -3G=25

2G = 10, G =5

B = G+35 = 40

So then the correct option would be:

C. BOTH statements 1 and 2 TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient.

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