PLEASE I REALLY NEED HELP!

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

___

2.

The 24 payments of $114.21 come to a total payback amount of ...

24 × $114.21 = $2741.04

___

3.

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

___

4.

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.

___

5.

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).

oeerivona oeerivona · Answer 2 · 2025-03-21T02:09:45-04:00

The interest on a fee is calculated by multiplying the fee by the interest

rate and the duration or units applicable.

The correct values are;

The monthly payment is C. $114.21

The total payback is D. $2,741.04

The second target debt and monthly amount is B. Debt 1, $375

The income earned on the checking account is B. $5.58

The statement that accurately compares debit and credit cards is C. Both cards are processed by the same card system services.

Reasons:

Monthly payment formula is presented as follows;

[tex]M = \dfrac{P \cdot \left(\dfrac{m}{12} \right) \cdot \left(1+\dfrac{m}{12} \right)^n }{\left(1+\dfrac{m}{12} \right)^n - 1}[/tex]

n = 2 years = 24 months

m = 9% = 0.09

P = The loan amount = $2,500

[tex]M = \dfrac{2500 \times \left(\dfrac{0.09}{12} \right) \cdot \left(1+\dfrac{0.09}{12} \right)^{24} }{\left(1+\dfrac{0.09}{12} \right)^{24} - 1} \approx 114.21[/tex]

The monthly payment, M ≈ $114.21

Second part;

The total payback ≈ $114.21 × 24 ≈ $2,741.08

The correct option is D. $2,741.04

Third question:

Using the stack method, the debts are arranged according to their interest rate as follows;

[tex]\begin{array}{| l| l| r| }\mathbf{Debts} &\mathbf{Interest \ Rate}& \mathbf{Minimum \ Monthly \ Payment}\\Debt \ 3& 13.25\%& \$150\\Debt \ 1&5.5\%&\$75 \\Debt 2&2.75\%&\$250\end{array}\right][/tex]

The debt with the highest interest rate is paid off first, therefore, the next

debt to which the extra money will be applied to is debt 1.

The extra money + The initially monthly payment for debt 3 + The monthly paid for debt 1 will be applied to debt 1

Which gives;

Money for debt 1 = $150 + $150 + £75 = $375

The correct option is B. Debt 1, $375

Fourth question:

Amount paid for the 21 checks = 21 × $0.10 = $2.1

The monthly service charge = $2.00

The interest paid = 0.008 × $1,210 = $9.68

The income earned = 9.68 - (2.1 + 2.0) = 5.58

The income earned on the checking account = $5.58

The correct option is B. $5.58

Fifth question;

The card system services required for a debit card and a credit card are;

The bank that receives the funds

The bank that issues the funds

The card association including VISA, MasterCard, that are the card's custodian.

Therefore, the correct option is C. Both cards are processed by the same system services.

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