Solved: Credit card with a nominal interest rate, Finance Basics

+44 141 628 6080
[email protected]

Credit card with a nominal interest rate

Problem: 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. If Helen makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card?

a. 11.4 months
b. 14.2 months
c. 19.9 months
d. 8.0 months
e. The card will never be paid off.

Solution Preview :

Prepared by a verified Expert

Finance Basics: Credit card with a nominal interest rate

Reference No:- TGS01450312

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Retained earnings on balance sheet

Problem: On 12/31/10, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $172,500 of net income during the year.

Q : Interpret the slope as a rate of change

I would like to graph the revenue of the company from 2005 to 2008. (a) Find the slope of the line shown. (b) Interpret the slope as a rate of change.

Q : How much dividends was paid to shareholders

Question 1: In its most recent financial statements, Newhouse Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings were $780 million. How much in dividends was paid to shareholders during th

Q : Maintaining a certain minimum price per share

I wonder if reverse stock splits are very common. I haven't heard of those very often. Why would a company want to do this? Also to be listed on a stock exchange stocks generally must maintain a certain minimum price per share. What is the thresho

Q : Credit card with a nominal interest rate

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. If Helen makes the minimum monthly payment and makes n

Q : Standard criticism of investment banking firms

A standard criticism of investment banking firms is their approach to valuation which includes determining a price for an offering and then manipulating the input variables into conventional valuation techniques to justify the arrived price.

Q : Calculate free cash flow for a firm

Problem: Discuss the data as found on the financial statements that are used to calculate free cash flow (FCF) for a firm.

Q : Discuss capital formation

Discuss capital formation as it relates to the business form and the life cycle of businesses. How would the business form used by the manager/owner impact the firm's ability to raise capital?

Q : Cash management techniques-cash rebates

Research "cash rebates" and other similar cash management techniques. Answer the following questions: Are these practices sound business decisions? Are they ethical? Explain.

1956580

Questions
Asked

3,689

Active Tutors

1428122

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Credit card with a nominal interest rate

Reference No:- TGS01450312

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Retained earnings on balance sheet

Q : Interpret the slope as a rate of change

Q : How much dividends was paid to shareholders

Q : Maintaining a certain minimum price per share

Q : Credit card with a nominal interest rate

Q : Standard criticism of investment banking firms

Q : Calculate free cash flow for a firm

Q : Discuss capital formation

Q : Cash management techniques-cash rebates

Is early food experiences can impact development

How do you define being an adult

Describe the results, including any scores

Identify a specific theory of cognitive or moral development

Why you feel unpleasantly hot and sweaty

How ensure that the youth understand what study involves

Problem concerning consensual sexual relationship

Solution Preview :

Prepared by a verified Expert

Finance Basics: Credit card with a nominal interest rate

Reference No:- TGS01450312

Recent Questions Asked Finance Basics

Q : Retained earnings on balance sheet

Q : Interpret the slope as a rate of change

Q : How much dividends was paid to shareholders

Q : Maintaining a certain minimum price per share

Q : Credit card with a nominal interest rate

Q : Standard criticism of investment banking firms

Q : Calculate free cash flow for a firm

Q : Discuss capital formation

Q : Cash management techniques-cash rebates

Asked Questions