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Chapter 5, Solutions        Cornett, Adair, and Nofsinger

Use equation 5-9:

If you only paid interest over the length of the loan and your principal balance was repaid at the end of the 36 months, your payment would be \$91.67 per month (= \$10,000×0.11÷12) for interest only and you would owe \$10,000 at the end of the 36 months, too.

LG105-37 Number of Annuity Payments Joey realizes that he has charged too much on his credit card and has racked up \$5,000 in debt.  If he can pay \$150 each month and the card charges 17 percent APR (compounded monthly), how long will it take him to pay off the debt?

Rewrite equation 5-9 in terms of N:

LG105-38 Number of Annuity Payments Phoebe realizes that she has charged too much on her credit card and has racked up \$6,000 in debt.  If she can pay \$200 each month and the card charges 18 percent APR (compounded monthly), how long will it take her to pay off the debt?

Rewrite equation 5-9 in terms of N: