Purchase Solution

Credit card interest

Not what you're looking for?

Ask Custom Question

Your credit card has a balance of $3600 and an annual interest rate of 18%. You decided to pay off the balance over four years. If there are no further purchases charged to the card,

a. how much must you pay each month?
b. how much total interest will you pay

a. the monthly payments are approximately$ ?

b. the total interest paid over 4 years is approximately ? round to the nearest dollar.

Purchase this Solution
Solution Summary

This is a series of problems regarding interest and credit card payments.

Solution Preview

The balance is $3600 and the annual interest rate is 18%, which is equal to 18%/12 = 0.015 monthly rate.
Suppose you need to pay x dollars each month. We have the ...

Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Operations Management

This quiz tests a student's knowledge about Operations Management

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

View More Free Quizzes
Related BrainMass Solutions

  • Special Pricing Practices: Credit Card and Interest Rates

    141655 Special Pricing Practices: Credit Card and Interest Rates Because credit card companies and banks must charge the same interest rate on credit cards to all borrowers, there is an adverse selection problem with credit cards.

  • APR calculation

    He would paid less in interest if he transfer his credit card balance to a credit card with a lower APR. The APR stands for annual percentage return on a credit card. It is simply analogous to the simple interest on a loan.

  • Why are credit card interest rates so high?

    475853 Explain the difference between the Federal Reserve's and credit card companies' interest rates. Kyle is confused. He has incurred a balance on his credit card on which he pays interest at an annual rate of about 18%.

  • Monthly interest and balance on credit cards

    530973 Monthly interest and balance on credit cards It's time to go shopping! You grab your Best Purchase credit card, which has an annual interest rate of 18%. The unpaid balance on your card for the current billing cycle is $285.76.

  • Operations/Credit Card Risks

    Banks make the majority of their money from interest and fees. Therefore, issuing credit cards is a great way for banks to generate monthly or daily compounded interest on these credit cards as well monthly and yearly credit card fees.

  • Banks: Solicitations for Credit Cards

    Banks should definitely take more responsibility in assessing if the consumer will, in reality, be able to pay back the credit card based on the interest rate and the credit limit of the card.

  • Options for reducing credit card interest rates

    Options for reducing credit card interest rates including fees are examined.

  • Comparing cost of credit cards

    First Card has no annual fee, but a higher interest rate of interest. If a person pays his dues in interest free period and does not use much credit, his interest charges will be zero or quite low.

  • Paying Off Credit Card Balances

    648020 Paying Off Credit Card Balances Assume you have a $3,500 balance on a credit card with a 14.5% APR.

  • Helen recently received a credit card with a nominal interes

    411608 Helen recently received a credit card with a nominal interest rate of 21 percent. With the card, she purchased some new clothes for $250. The minimum payment on the card is only $20 per month.

View More Related Solutions