The Mathematics of Money

422 Chapter 10 Consumer Mathematics that the account carried each balance; each balance amount would count once for each day tha ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 10.1 Credit Cards 423 Effective Date Activity Balance Days at Balance (Balance ...

424 Chapter 10 Consumer Mathematics I
PRT I
($750.13)(0.1599)(31/365) I
$10.19 So her interest for this billing month woul ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 10.1 Credit Cards 425 charge on your monthly bill? Assuming that you paid your ...

426 Chapter 10 Consumer Mathematics calculations behind your decision. There is something to be said for simplicity—keeping all ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 10.1 Credit Cards 427 Jerome’s $800 predicted balance is large enough to justi ...

428 Chapter 10 Consumer Mathematics on a large balance in order to earn a half-penny back on each dollar spent might be better o ...

Copyright © 2008, The McGraw-Hill Companies, Inc. a. If Daeshawn’s credit card carries a 10.99% interest rate, how much interes ...

430 Chapter 10 Consumer Mathematics E. Choosing the Best Deal Arturo is looking around for a Visa card, and has narrowed his ch ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Under what circumstances (be specifi c) would you: a. Prefer Western Trust ove ...

432 Chapter 10 Consumer Mathematics Rikki’s credit card bill is produced on the 19th of each month. On January 19 her balance w ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 10.1 Credit Cards 433 (^5) Throughout this section, we will use the terms hous ...

434 Chapter 10 Consumer Mathematics With few exceptions, the amount borrowed with a mortgage loan must be less than the value of ...

Copyright © 2008, The McGraw-Hill Companies, Inc. This can be easily confused with a similar financial product called a home equ ...

436 Chapter 10 Consumer Mathematics There will also normally be a cap on how much the rate can change at a time (such as not mor ...

Copyright © 2008, The McGraw-Hill Companies, Inc. You may want to review the material from Section 4.4 covering present values o ...

438 Chapter 10 Consumer Mathematics rates can vary dramatically from one state to another, and even from one community to anothe ...

Copyright © 2008, The McGraw-Hill Companies, Inc. so will also usually require escrow for insurance. Insurance escrow works in e ...

440 Chapter 10 Consumer Mathematics lumped together. This total payment is referred to as the PITI (an acronym for principal, in ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Example 10.2.7 Antoine and Maria earn a combined annual income of $76,500. The ...