2.) debt ratio is calculated by____. A. adding all you oweB. subtracting all that you owe from your available credit limitsC. adding all that you owe and dividing by your total available credit limitD. taking your total available credit limit and dividing by the total you owe3.) if your credit score is 750, how much will you pay in interest by the end of 1 month if you owe 2,375.00 use table attached for number three and the following question4.) you have two credit cards. one has a balance of 1,675.00 at a 9.75% APR and the other has a balance of 2,378.00 and is dependent upon your credit score. your score is 650. how much interest is accrued in the first month
Accepted Solution
A:
2)Since the score is 750, then the annual rate is 9.25% (see the table) Then monthly rate:9.25/12=0.77%. Then compute 0.77% from $2,375.00 like this: [tex]0.0077\times2375=\$18.30[/tex] Answer: interest to pay: $18.30.
3)Compute monthly rate for first account: 9.75/12=0.81% Compute 0.81% of $1,675.00 like this:[tex]0.0081\times1675=13.5[/tex] Second account: compute monthly rate: 12.5/12=1.04%. Then compute [tex]0.0104\times1,675.00=17.4[/tex] Conclusion: Monthly interest is $13.5+$17.4=$30.9