You bought a house for 150,000. The bank required a 20% down payment and gave you a 30-year mortgage loan for the remainder. Assume an annual interest rate of 3.5% and a monthly repayment schedule. What is your monthly payment? After 18 years of payments, how much do you still owe?
You have a credit card with a current balance of $5000. Your annual percentage rate is 15%.
a. What is your monthly payment if you want to have a zero balance in 5 years?
b. If you refinance today for a new card at an APR of 12% and keep the payment the same as in A above, how long will it take to pay off the balance?