ddong_ggoo a asked:
Jose wants to buy a stereo for $650 and pay for it using a credit card that has an APR of 19.85% and a periodic interest rate of 1.65%
IF JOSE PAYS THE MINIMUM MONTHLY PAYMENT OF $21.45
1. how long will it take him to pay for the stereo?
2. what is the total amount jose will pay for the stereo?
3. what is jose’s total cost of using credit?
IF JOSE MAKES MONTHLY PAYMENTS OF $60
4. how many months will it take for jose to pay off the stereo?
5. what is the total amount jose will pay for the stereo?
6. what is jose’s total cost of using credit?
DEWEY
Jose wants to buy a stereo for $650 and pay for it using a credit card that has an APR of 19.85% and a periodic interest rate of 1.65%
IF JOSE PAYS THE MINIMUM MONTHLY PAYMENT OF $21.45
1. how long will it take him to pay for the stereo?
2. what is the total amount jose will pay for the stereo?
3. what is jose’s total cost of using credit?
IF JOSE MAKES MONTHLY PAYMENTS OF $60
4. how many months will it take for jose to pay off the stereo?
5. what is the total amount jose will pay for the stereo?
6. what is jose’s total cost of using credit?
DEWEY
ISAAC
This reminds me of the amoritzation problems from my calculus class in college. The periodic interest rate was rounded down a bit more than what I would have used if I were to do this in Excel. I’m too lazy to do that, so I’m using a simple calculator and rounding my answers… am I right?
1. 3 1/2 years
2. $950
3. $300
4. 12 months.
5. $720
6. $70
Comment by Sarah K — January 12, 2010 @ 6:43 am