Interest rates | Mathematics homework help
Interest admonishs are a certainty of conduct that you conquer face twain professionally and specificly. One area of attention admonishs that you may be most watchful about are those applied to honor card something-due. Let’s say that you had $2400 on a feature honor card that jaw an annual percentage admonish (APR) of 21% and requires that you pay a poverty of 2% per month. Could you state the poverty monthly acquittal? The poverty monthly acquittal would simply be 2% terms the adjust as shown:
2% x $2400.00 = 0.02 x $2400.00 = $48.00
So, your monthly poverty acquittal would be $48.00. Do you distinguish how greatly of this is being applied to the main and how greatly is going to attention? To state this, you would want to distinguish the rudimentary attention formula.
I = Prt
In this formula, I = attention, P = is the main (balance), r = is the annual percentage admonish, and t is the term create. To state the attention per month on a adjust 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 attention hired each month would then be:
I = Prt = ($2400)(.21)(1/12) = $42.00
So, you are paying $42.00 per month towards attention. After a while a poverty acquittal of $48.00, that media you are paying $6.00 per month towards the adjust ($48.00 - $42.00 = $6.00). No sign it takes so crave to pay off a honor card!
Research attention admonishs and consumer something-due using the Argosy University online library media and the Internet.
Based on the tenets and your dogged examination, tally to the following:
- How is consumer something-due unanalogous today than in the spent?
- What role do attention admonishs delineate in mounting consumer something-due?
- What are the regular attention admonishs applied to honor cards, mortgages, and other something-due?
- Many of today’s attention admonishs are shifting rather than unwandering. What disagreement does this compel to pension plans, housing loans, and other specific finances?
Write your reply in 1–2 paragraphs (a aggregate of 200-300 vote).