Topic Test Answers

In general, reducing the number of periods (n) used to pay off credit card debt but keeping the present value (PV) and interest rate (i) the same will __________.a.reduce the monthly payment (P)b.increase the monthly payment (P)c.eliminate the monthly payment (P)d.have no effect on the monthly payment (P)

What are the total amount of choices possible if an individual is to create a 4 digit password using the digits 0 through 9 inclusive, but not using the digit 0 as the first character of the password? a. 39 b. 900 c. 399 d. 9000 Please select the best answer from the choices provided.

Which of the following items would you most likely be able to keep in Chapter 7 bankruptcy?a.equity in your homeb.a fur coat worth $2,000c.a sports car with $6,000 equityd.tools for your woodworking hobby

Tony wants to pay off his credit card balances within 12 months. He is trying to decide if he should use his $1,000 in savings to pay off part of the balances or if he should transfer the balances to a new card with a low introductory rate. The new credit card has an introductory rate of 7% but charges a balance transfer fee of $75 for each balance transfer. Evaluate Tony's options and recommend the debt management plan that would give him the lowest monthly payment. Credit Card A: $794 Credit Card B: $579 a. Pay off Credit Card B using the savings. Transfer the balance of Credit Card A to the new card. b. Pay off Credit Card A using the savings. Transfer the balance of Credit Card B to the new card. c. Pay off $500 from both Credit Card A and Credit Card B. Transfer the remaining balances from both cards to the new card. d. Pay off all of Credit Card A, and $206 of Credit Card B. Transfer the remaining balance of Credit Card B to the new card. Please select the best answer from the choices provided.

Frank has four different credit cards, the balances and interest information of which are outlined in the table below. He would like to consolidate his credit cards to a single credit card with an APR of 18% and pay off the balance in 24 months. What will his monthly credit card payment be?Credit CardBalanceAPRA$2,380 19%B$4,500 15%C$1,580 17.50%D$900 21%a.$390.00b.$462.91c.$467.29d.$52.00