omework: Section 8.8 Homework ore: 0 of 1 pt 8.7 Your credi card has a balance o

Question

omework: Section 8.8 Homework ore: 0 of 1 pt 8.7 Your credi card has a balance of $3500 and an annual interest rale of 17% With no further purchases charged 12 of 20 (I6 complete) HW Score: 75%, 15 of20 Question Hep to the cand and the balance being paid off over three years, the monthly payment is $125, and the total Interest paid is $1000 You can get a bank loan at 9 5% with a term of four years each mort? How doescompare with the esedeoard payment each mort? with the total credt-card interest? a. Select the conect choice band in the aner boxes within your choice (De not round unital the inal anwer Then round to the nearest dllar as needed or the bank loan are approximatelyThis s&mare; than th montly credcnd payments

Explanation / Answer

Bank Monthly Payment = (Loan Amount / Total of present value factor of 9.5 % p.a for four years) / 12 Months

= ($ 3500 / 3.2045) / 12 Months

= $ 1,092.21 / 12 Months

= $ 91.02 Per Month (Approx)

So, The Monthly Payment for the bank loan are approximately $ 91.02 per month. This is $ 33.98 Per Month ($ 125 - $ 91.02) less than the monthly credit card Payment (Option B is Correct)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.