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Serhud [2]
2 years ago
13

With a beginning balance of $1200 and no additional charges during the next three months, you will just pay the minimum payment

each month for the next three months. The APR is 24.99% and the minimum payment each month is 3% of the balance.
Mathematics
1 answer:
oksano4ka [1.4K]2 years ago
5 0

Here is the complete question.

With a beginning balance of $1200 and no additional charges during the next three months, you will just pay the minimum payment each month for the next three months. The APR is 24.99% and the minimum payment each month is 3% of the balance. Determine the finance charge, new balance, and minimum payment required for each of the next three months, and the starting balance for month 4 in the table below.

a) What is the total of minimum payments?

b) What is the total sum of the finance charges?

c) How much does the starting balance decrease after these three payments?

d)The total of your finance charges is what percent of our total payments?

Answer:

Step-by-step explanation:

Month       Beginning        Finance          New               Minimum

                  Balance          Charge            Balance        Payment

1          $ 1200             24.99           1224.99            36.75

2          1188.24             24.75          1212.99            36.39

3          1176.60             24.50           1201.10            36.03

4          1165.07             24.26           1189.33             35.68

a.

The total minimum payments for 3 months = 36.75 + 36.39 + 36.03

The total minimum payments for 3 months = $ 109.17

b.

Total finance charges for 3 months = 24.99 + 24.75 + 24.50

Total finance charges for 3 months = $ 74.24

c. The starting balance decrease from 1200 to 1165.07, this implies that there is a reduction of $ 34.93

d. The total of finance charges = 74.24×(100/109.17)

The total of finance charges = 68% of total payments.

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We proceed as follows;

From the question, we have the following information;

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(b) The Probability that the first ball is black given that the second ball is white is same as the probability that first ball is black (11/25). This is because the event of picking of first ball is independent of the event of picking of second ball.

Although the event picking of the second ball is dependent on the event of picking the first ball.

Hence, probability that the first ball is black given that the second ball is white is 11/25

​​

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