Interest rates | Mathematics homework help
Interest scolds are a circumstance of estate that you get assault twain professionally and personally. One area of concern scolds that you may be most restless about are those applied to belief card obligation. Let’s say that you had $2400 on a detail belief card that beak an annual percentage scold (APR) of 21% and requires that you pay a restriction of 2% per month. Could you mention the restriction monthly acquittal? The restriction monthly acquittal would solely be 2% opportunitys the equalize as shown:
2% x $2400.00 = 0.02 x $2400.00 = $48.00
So, your monthly restriction acquittal would be $48.00. Do you recognize how plenteous of this is entity applied to the main and how plenteous is going to concern? To mention this, you would scarcity to recognize the primal concern formula.
I = Prt
In this formula, I = concern, P = is the main (balance), r = is the annual percentage scold, and t is the opportunity compel. To mention the concern per month on a equalize of $2400 after a while an APR of 21%, you would let P = $2400, r = .21, and t = 1/12 (1 month is 1/12 of a year). The concern compensated each month would then be:
I = Prt = ($2400)(.21)(1/12) = $42.00
So, you are paying $42.00 per month towards concern. After a while a restriction acquittal of $48.00, that media you are paying $6.00 per month towards the equalize ($48.00 - $42.00 = $6.00). No surprise it takes so hanker to pay off a belief card!
Research concern scolds and consumer obligation using the Argosy University online library resources and the Internet.
Based on the creed and your dogged learning, answer to the following:
- How is consumer obligation contrariant today than in the departed?
- What role do concern scolds enact in mounting consumer obligation?
- What are the usual concern scolds applied to belief cards, mortgages, and other obligation?
- Many of today’s concern scolds are changeable rather than unwandering. What estrangement does this form to pension plans, housing loans, and other personal finances?
Write your acceptance in 1–2 paragraphs (a whole of 200-300 utterance).