Use PMT= -nt
to determine the regular payment amount, rounded to the nearest dollar. Your credit card has
1 -
a balance of $3700 and an annual interest rate of 17%. With no further purchases charged to the card and the balance
being paid off over three years, the monthly payment is $132, and the total interest paid is S1052. You can get a bank loan at 9.5% with a term of four years. Complete parts (a) and (b) below.
a. How much will you pay each month? How does this compare with the credit card payment each month? Select the
correct choice below and fill in the answer boxes to complete your choice.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
O A. The monthly payments for the bank loan are approximately $
This is
$
less than the monthly credit card payments.
OB. The monthly payments for the bank loan are approximately $
This is
$
more than the monthly credit card payments.
b. How much total interest will you pay? How does this compare with the total credit card interest? Select the correct