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Alona [7]
3 years ago
7

Assume that you have a balance of $4000 on your credit card and that you make no more charges. If your APR is 23.9% and each mon

th you make only the minimum payment of 5% of your balance, then when is the first time that the balance would be less than $100?
Business
2 answers:
KatRina [158]3 years ago
6 0

Answer:

The balance will be less than $100 after 44 months payment

Explanation:

In this question, we are asked to calculate the time at which the Balance on a credit card would be less than $100.

To calculate this, we proceed as follows;

The monthly Interest rate = 23.9%/12 = 1.99166667%

Balance after t months = Credit Card balance * [(1 + Monthly interest rate ) * (1- Minimum payment rate)]^t

The credit card balance is $4,000, and the minimum payment rate is 5%

We plug these values into the equation to get;

$4,000 * [(1+1.99166667%) * (1 - 5%)]^t

= $4000 *[1.0199166667 * 0.95]^t

= $4000 * (0.968920836)^t

Balance after t months < 100

$4,000 * (0.968920836)^t < 100

(0.968920836)^t < 0.025

t = 43.9 months = 44 months

lbvjy [14]3 years ago
5 0

Answer: The balance will be less than $100 after 44 months.

Explanation:

We are to calculate the time when the balance on a credit card would be less than $100.

We were given the following:

APR = 23.9%

Monthly Interest rate will therefore be:

23.9%/12 = 1.99% or 0.0199

Credit card balance = $4,000

Minimum payment rate = 5% or 0.05

The formula is given as:

Balance after t months = Credit Card balance x [(1 + Monthly interest rate ) x (1- Minimum payment rate)]^t

Therefore:

$4,000 x [(1+0.0199) x (1 - 0.05)]^t

= $4000 x [1.0199 x 0.95]^t

= $4000 x (0.97)^t

Balance after t months < 100

= $4,000 x (0.97)^t < 100

= (0.97)^t < 100/4000

= (0.97)^t < 0.025

t = 43.9 months

t is therefore approximately 44 months.

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Explanation:

The Journal Entry is shown below:-

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Option "A" is correct. Expected amount of misstatements

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2 years ago
Read 2 more answers
Which option best describes the word ethical?
weeeeeb [17]

What are the options, sir?

Ethical usually means what is right, or morally right. For example, killing someone isn't ethical, but helping an elderly person up from falling would be the ethical thing to do.

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Boba, a Taiwanese tea drink, because boba is popular with students. The market for boba on the UCI campus is very competitive. I
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Answer:

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A competitive market has the following characteristics.

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For example, Individual A pays most of the payments through cash and his current assets are being reduced due to that his working capital would also reduce with its cash flow but the liabilities will remain unchanged as they are long-term debt.

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You can learn more about Economics Capitals: brainly.com/question/28179485

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