1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ohaa [14]
3 years ago
9

You have a credit card with a balance of $10,900 and an APR of 17.1 percent compounded monthly. You have been making monthly pay

ments of $215 per month, but you have received a substantial raise and will increase your monthly payments to $265 per month. How many months quicker will you be able to pay off the account
Business
2 answers:
sladkih [1.3K]3 years ago
8 0

Answer:

months quicker = 91 months - 62 months = 29 months

Explanation:

using a financial calculator

SET  calculator to a 12 months interval payments

PV = -$10.900, r= 17.1%, FV=0, ,PMT = $215

COMPUTE N?

N= 90.58 ≈ 91 months

Raise and new pmt =265

N=62.35≈62 Months

VMariaS [17]3 years ago
5 0

Answer:

Approximately 15 months quicker

Explanation:

A = PMT(1+r/100)^t

where r = monthly rate = 17.1/12=1.425%

t= time in months

PMT = monthly payments

A= Amount = $10,900

Case 1; At PMT of $215

Therefore,

10,900 = 215(1 + 0.01425)^t

1.01425^t= 50.7

Solving for t, t= 277.46 months

Case 2; At PMT of $265

Therefore,

10,900 = 265(1 + 0.01425)^t

1.01425^t= 41.13

Solving for t, t= 262.68 months

The months quicker = 277.46 - 262.68 = 14.78 months

Approximately 15 months quicker

You might be interested in
What will be the resulting change in equilibrium of the chocolate bar market
myrzilka [38]

Equilibrium price will increase and quantity will decrease will be the resulting change in the equilibrium of the chocolate bar market.

The equilibrium charge is the rate at which the amount demanded equals the amount supplied. It's far decided through the intersection of the demand and deliver curves. A surplus exists if the amount of an excellent or carrier provided exceeds the amount demanded on the contemporary charge; it causes downward strain on the charge.

Equilibrium is the nation wherein market supply calls for balance every other, and as a result, costs come to be strong. Typically, an over-supply of goods or services causes expenses to move down, which results in a higher call for—while an underneath-deliver or shortage causes fees to head up resulting in less demand.

Upward shifts inside the supply and demand curves have an effect on the equilibrium rate and amount. If the deliver curve shifts upward, meaning deliver decreases however demand holds constant, the equilibrium rate will increase but the quantity falls.

Learn more about the Equilibrium price here brainly.com/question/26075805

#SPJ4

3 0
2 years ago
Your company is considering the replacement of an old delivery van with a new one that is more efficient. The old van cost $40,0
Helen [10]

Answer:

$51,164

Explanation:

The project's terminal cash flow is basically the cash flow of the project's last year.

depreciable value = $80,000 + $6,000 - $23,031 = $62,969

depreciation expense per year = $62,969 / 5 = $12,593.80 per year

net cash flow year 5 = [(savings - depreciation expense) x (1 - tax rate)] + depreciation expense + salvage value + recovery of net working capital = [($28,000 - $12,593.80) x (1 - 35%)] + $12,593.80 + $23,031 + $5,525 = $51,163.83 ≈ $51,164

7 0
3 years ago
Airborne Airlines Inc. has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest pa
ivann1987 [24]

Answer:

7.52%

Explanation:

First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:

=rate(nper,pmt,-pv,fv)

the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times

pmt is the amount of annual coupon payment which is $106

pv is the current price of the bond at $860

fv is the face value of the bond at $1000

=rate(20,106,-860,1000)=12.54%

The yield to maturity on the new issue is 12.54%  as well

after-tax cost of debt=pretax cost of debt*(1-t)

pretax cost of debt is yield to maturity of 12.54%

t is the tax rate of 40% or 0.4

after-tax cost of debt=12.54% *(1-0.4)=7.52%

5 0
3 years ago
Industrialized former colonial states that dominate the world economic system are?
Verizon [17]
Industrialized former colonial states that dominate the world economic system: Core Countries
5 0
2 years ago
The contact between the breccia and the underlying granite is an example of a(n):____.
3241004551 [841]

Correct option is (b): angular unconformity

The contact between the breccia and the underlying granite is an example of angular unconformity

Breccia is a type of  sedimentary rock which is composed of large angular broken fragments of minerals or rocks cemented together by a fine-grained matrix.

In the Italian language ,Breccia word means "rubble". A breccia may have a variety of different origins, as indicated by the named types including sedimentary breccia, igneous breccia, impact breccia, tectonic breccia and hydrothermal breccia.

Granite is a coarse-grained intrusive igneous rock  which is composed of quartz, alkali feldspar, and plagioclase. It forms from magma with a high content of silica and alkali metal oxides that slowly cools and solidifies underground

To know more about breccia here:

brainly.com/question/15185919

#SPJ4

5 0
2 years ago
Other questions:
  • ASAP!!!!!!!!!!1
    12·1 answer
  • Employee morale, timeliness of delivery, and the reactions of customers are examples of nonfinancial factors that should be cons
    14·1 answer
  • One major role of firms is to manage risk. Consumers do not want to pay for products of unknown quality or where the delivery da
    11·1 answer
  • What percentage of American business owners used money of their own, or form their families, to start or buy a business
    6·2 answers
  • __________ manages the movement of raw materials, parts, work in progress, finished goods and related information throughout the
    14·1 answer
  • A young software development company recently went public. To attract investors, the company executives want to emphasize the am
    13·1 answer
  • Firms minimize​ costs; thus, a firm earning​ short-run economic profits will choose to produce at the minimum point on its avera
    6·1 answer
  • 1)______elimination risks.
    5·1 answer
  • An increase in the price of a resource would cause
    6·1 answer
  • The Ingraham Corporation has $1,000 par value bonds outstanding. The bonds have an annual coupon rate of 8.90 percent and an ann
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!