1. On a credit card that currently has a $10,500 balance and an interest rate of 17.99% (compounded monthly, charged on the outstanding balance at the end of each month), how long will it take to pay off the card if I make payments of $207 each month?
2. How much would you be willing to pay (i.e. what is the present value) of an annuity that pays you $5,000 at the end of every year for the next 25 years? Assume the appropriate discount rate is 6.0%.
3. If you have a credit card with a balance of $10,500 and an interest rate of 17.99% (compounded monthly), what is the payoff amount (i.e. remaining principal amount) after 40 months of $276 payments?