Calculate the monthly payment for a $2,500 loan at 9% annual interest for two years. use the formula, m = pm(1 + m)^na/(1 + m)^na - 1 as needed. a. $85.15 b. $105.40 c. $114.21 d. $125.72 calculate the total payback for a $2,500 loan at 9% annual interest for two years. use the formula, m = pm(1 + m)^na/(1 + m)^na - 1 as needed. a. $1,021.80 b. $1,370.52 c. $2,043.60 d. $2,741.04 alice wants to use the stack method to pay down her debts listed in the table below. if she applies an extra $150 a month to her debts, what will be the second debt she targets to pay off and what will be the monthly amount she applies to it? debts interest rate minimum monthly payment debt 1 5.5% $75 debt 2 2.75% $250 debt 3 13.25% $150 a. debt 1, $225 b. debt 1, $375 c. debt 3, $300 d. debt 3, $400 at greenbrier bank, checking account customers earn 0.8% interest a month on their account balances, pay a $0.10 service fee per check, and pay a monthly $2.00 financial charge. calculate the income earned on the checking account for a customer who writes 21 checks and maintains a minimum balance of $1,210. a. $4.27 b. $5.58 c. $6.42 d. $7.35 which statement most accurately compares debit and credit cards? a. both cards deduct from funds currently in a checking account. b. both cards use funds temporarily loaned from a financial institution. c. both cards are processed by the same card system services. d. both carry the risk of overdraft.
The given formula is useless for two reasons: 1) the variables are not defined; 2) it is missing essential parentheses. We assume it is intended to be ...
M = Pm(1+m)^(na)/((1+m)^(na) -1)
where M is the monthly payment; P is the principal amount of the loan; m is the monthly interest rate; n is the number of payments per year; a is the number of years. Your values are ...
P = $2500, m = 0.0075, n = 12, a = 2
Filling these values into the formula, we get
M = $2500·0.0075·1.0075^(12·2)/(1.0075^(12·2) -1) ≈ $114.21
The 24 payments of $114.21 come to a total payback amount of ...
24 × $114.21 = $2741.04
According to the "stack method", Alice will pay off the debt with the highest interest rate first. That is Debt 3. Its minimum payment of $150 can be added to the amount she applies to the payment of the debt with the second-highest interest rate, Debt 1. Alice can make a payment on Debt 1 of ...
$150 (no longer needed for Debt 3) + $75 (minimum for Debt 1) + $150 (her extra contribution) = $375
The service charge of $2.00 and the per-check charge of $0.10×21 checks total $4.10. This is deducted from the interest earned of 0.008×$1210 = $9.68. The resulting income earned is $5.58.
Debit cards deduct funds from a checking account. Credit cards use funds temporarily loaned. Both cards are processed by the same system.
A debit card carries the risk of an overdraft (or not: the transaction may simply be denied). Whether a particular transaction results in an overdraft generally depends on the sequence in which checking account transactions are processed. A credit card transaction involves loaned money (up to some limit), so cannot cause an overdraft (until a payment is made on the credit card account).