Simon recently received a credit with an 12% nominal interest rate. With the car

Question

Simon recently received a credit with an 12% nominal interest rate. With the card he recently purchased an Apple iPhone 5 for $410. The minimum payment on the card is only $10 per month.
A) if Simon make the minimum payment only each month how many months will it take off to pay the whole balance?

B) if Simon makes a $30 payment each month how many months will it take to pay off the whole balance?
C) how much more in payments will Simon make if he chooses the $10 plan over the $30 plan? Simon recently received a credit with an 12% nominal interest rate. With the card he recently purchased an Apple iPhone 5 for $410. The minimum payment on the card is only $10 per month.
A) if Simon make the minimum payment only each month how many months will it take off to pay the whole balance?

B) if Simon makes a $30 payment each month how many months will it take to pay off the whole balance?
C) how much more in payments will Simon make if he chooses the $10 plan over the $30 plan?
A) if Simon make the minimum payment only each month how many months will it take off to pay the whole balance?

B) if Simon makes a $30 payment each month how many months will it take to pay off the whole balance?
C) how much more in payments will Simon make if he chooses the $10 plan over the $30 plan?

Explanation / Answer

Interest Rate is 12% p.a. then per month interest rate is 12%/12=1% pm

Total Principal amount is $410

A)When Installment is $10 per month

It takes 53 months for repayment of whole balance

B)If the installment is $30 each month

It takes 15 months for repayment

While repayment of $10 for each month Interest payment is $120.27 and when it is $30 per month $33.09

Month Installment(a) Opening balance(b) Principal Repayment(c=a-d) Interest(d=b*1%) Closing Balance(e=b-c) 1 10 410.00 5.90 4.10 404.10 2 10 404.10 5.96 4.04 398.14 3 10 398.14 6.02 3.98 392.12 4 10 392.12 6.08 3.92 386.04 5 10 386.04 6.14 3.86 379.90 6 10 379.90 6.20 3.80 373.70 7 10 373.70 6.26 3.74 367.44 8 10 367.44 6.33 3.67 361.11 9 10 361.11 6.39 3.61 354.73 10 10 354.73 6.45 3.55 348.27 11 10 348.27 6.52 3.48 341.76 12 10 341.76 6.58 3.42 335.17 13 10 335.17 6.65 3.35 328.52 14 10 328.52 6.71 3.29 321.81 15 10 321.81 6.78 3.22 315.03 16 10 315.03 6.85 3.15 308.18 17 10 308.18 6.92 3.08 301.26 18 10 301.26 6.99 3.01 294.27 19 10 294.27 7.06 2.94 287.22 20 10 287.22 7.13 2.87 280.09 21 10 280.09 7.20 2.80 272.89 22 10 272.89 7.27 2.73 265.62 23 10 265.62 7.34 2.66 258.27 24 10 258.27 7.42 2.58 250.86 25 10 250.86 7.49 2.51 243.37 26 10 243.37 7.57 2.43 235.80 27 10 235.80 7.64 2.36 228.16 28 10 228.16 7.72 2.28 220.44 29 10 220.44 7.80 2.20 212.64 30 10 212.64 7.87 2.13 204.77 31 10 204.77 7.95 2.05 196.82 32 10 196.82 8.03 1.97 188.78 33 10 188.78 8.11 1.89 180.67 34 10 180.67 8.19 1.81 172.48 35 10 172.48 8.28 1.72 164.20 36 10 164.20 8.36 1.64 155.85 37 10 155.85 8.44 1.56 147.40 38 10 147.40 8.53 1.47 138.88 39 10 138.88 8.61 1.39 130.27 40 10 130.27 8.70 1.30 121.57 41 10 121.57 8.78 1.22 112.79 42 10 112.79 8.87 1.13 103.91 43 10 103.91 8.96 1.04 94.95 44 10 94.95 9.05 0.95 85.90 45 10 85.90 9.14 0.86 76.76 46 10 76.76 9.23 0.77 67.53 47 10 67.53 9.32 0.68 58.20 48 10 58.20 9.42 0.58 48.79 49 10 48.79 9.51 0.49 39.27 50 10 39.27 9.61 0.39 29.67 51 10 29.67 9.70 0.30 19.96 52 10 19.96 9.80 0.20 10.16 53 10 10.16 10.16 0.10 0.00

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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