Michael has a credit card debt of $75,000 that has a 12% APR, compounded monthly. The minimum monthly payment only requires him to pay the interest on his debt. He receives an offer for a credit card with an APR of 4% compounded monthly
If he rolls over his debt onto this card and makes the same monthly payment as before, how long will it take him to pay off his credit card debt?
A) 112 months
B) 113 months
C) 120 months
D) 122 months
Answer: D
You might also like to view...
What can happen when parties have different social roles outside the negotiation (e.g., president, vice president, consultant, specialist) compared to when parties in the negotiation are equals?
What will be an ideal response?
To maintain trustworthy customer relationships, companies must take care that they respect customer privacy and respect the________-that is, the amount of information a customer feels comfortable providing.
A. communication tolerance level B. information limit C. privacy bubble D. privacy zone E. information comfort zone
Advertising studies indicate that consumers respond more favorably to ________ with repeated exposure to advertisements.
A. fad products B. marketing channels C. ideas D. brand extensions E. services
On January 2, 20X8, Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Ski's balance sheet contained the following information: Foreign CurrencyUnits (FCU)Cash 40,000 Receivables (net) 150,000 Inventories (FIFO) 500,000 Plant and Equipment (net) 1,500,000 Total 2,190,000 Accounts Payable 200,000 Capital Stock 600,000 Retained Earnings 1,390,000 Total 2,190,000 Ski's income statement for 20X8 is as follows: Foreign CurrencyUnits (FCU)Revenues from Sales 1,010,000 Cost of Goods Sold (590,000) Gross Margin 420,000 Operating Expenses (exclusive of
depreciation) (120,000) Depreciation Expense (200,000) Income Taxes (40,000) Net Income 60,000 The balance sheet of Ski at December 31, 20X8, is as follows: Foreign CurrencyUnits (FCU)Cash 180,000 Receivables (net) 210,000 Inventories (FIFO) 520,000 Plant and Equipment (net) 1,300,000 Total 2,210,000 Accounts Payable 180,000 Capital Stock 600,000 Retained Earnings 1,430,000 Total 2,210,000 Ski declared and paid a dividend of 20,000 FCU on October 1, 20X8. Spot rates at various dates for 20X8 follow: January 21 FCU=$1.50 October 11 FCU=$1.60 December 311 FCU=$1.70 Weighted Average1 FCU=$1.55 ?Assume Ski's revenues, purchases, operating expenses, depreciation expense, and income taxes were incurred evenly throughout 20X8.Refer to the above information. Assuming the U.S. dollar is the functional currency, what is Ski's net income for 20X8 in U.S. dollars (include the remeasurement gain or loss in Ski's net income)? A. $202,000 B. $219,500 C. $228,000 D. $238,000