Like many college students, Diana applied for and got a credit card that has an annual percentage rate (APR) of 15%. The first thing she did was buy a new DVD player for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15. Assume Diana makes her payment when she sees her statement at the end of each month. If Diana doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the DVD player? Assume that the credit card company compounds interest at the end of each month. 35.8 months O 37.8 months O 46.3 months O 50.0 months O 32.6 months Diana now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates). She decides to pay twice the minimum monthly payment ($30 per month), instead. How much quicker will she pay off the DVD player? 19.5 months 26.4 months O 21.1 months O 17.9 months O 29.5 months If, instead, Diana wants to have the DVD player paid for by the end of the year, what minimum monthly payment must she make? O $31.59 O $29.08 O $26.65 $36.10 O $32.09
Like many college students, Diana applied for and got a credit card that has an annual percentage rate (APR) of 15%. The first thing she did was buy a new DVD player for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15. Assume Diana makes her payment when she sees her statement at the end of each month. If Diana doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the DVD player? Assume that the credit card company compounds interest at the end of each month. 35.8 months O 37.8 months O 46.3 months O 50.0 months O 32.6 months Diana now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates). She decides to pay twice the minimum monthly payment ($30 per month), instead. How much quicker will she pay off the DVD player? 19.5 months 26.4 months O 21.1 months O 17.9 months O 29.5 months If, instead, Diana wants to have the DVD player paid for by the end of the year, what minimum monthly payment must she make? O $31.59 O $29.08 O $26.65 $36.10 O $32.09
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Like many college students, Diana applied for and got a credit card that has an annual percentage rate (APR) of 15%. The first thing she did was buy
a new DVD player for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15.
Assume Diana makes her payment when she sees her statement at the end of each month. If Diana doesn't charge anything else and only makes the
minimum monthly payments, approximately how many months would it take her to completely pay off the DVD player? Assume that the credit card
company compounds interest at the end of each month.
O 35.8 months
O 37.8 months
O 46.3 months
O 50.0 months
O 32.6 months
Diana now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates).
She decides to pay twice the minimum monthly payment ($30 per month), instead. How much quicker will she pay off the DVD player?
19.5 months
O 26.4 months
O 21.1 months
O 17.9 months
O 29.5 months
If, instead, Diana wants to have the DVD player paid for by the end of the year, what minimum monthly payment must she make?
O $31.59
O $29.08
$26.65
$36.10
O $32.09
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