Suppose that on January 1 you have a balance of $3500 on a credit card whose APR

Question

Suppose that on January 1 you have a balance of $3500 on a credit card whose APR is 15%, which you want to pay off in 4 years. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment (part b) is interest? a. The monthly payment is $ nothing. (Do not round until the final answer. Then round to the nearest cent as needed.) b. The total paid since January 1 is $ nothing. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) c. The percentage of the total paid that is interest is nothing%. (Use the answer from part b to find this answer. Round to one decimal place as needed.)

Explanation / Answer

EMI=[P x R x (1+R)^N]/[(1+R)^N-1] = 3500* 0.15/12 * [1+0.15/12]^48 /[[1+0.15/12]^48 -1]=97.40

b) Total Paid = 97.40*48=4676

c) Interest=4676-3500=1176

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

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