Your friends know you enjoy music, so they buy you a gift card for $20.00 to a popular online music provider. Each download costs $1.39. What is the balance on the gift card if you download as many songs as possible without going over the gift card limit?
To calculate the maximum number of songs that can be downloaded with the $20.00 gift card, divide the total amount of the gift card by the cost of each download:
$20.00 / $1.39 = 14.39
Since you cannot download a fraction of a song, you can only download a maximum of 14 songs.
Therefore, the balance on the gift card after downloading 14 songs would be:
$20.00 - (14 x $1.39) = $20.00 - $19.46 = $0.54
So, the balance on the gift card after downloading as many songs as possible without going over the gift card limit would be $0.54.
Your parents allow you to borrow a car to get to your part-time job, but you have to pay for a tank of gas each month. Gasoline costs $2.76/gallon and the tank takes 15 gallons. You have 2 coworkers who are each willing to pay for a quarter of a tank each month to carpool with you to work. How much do you save each month?
The total cost of a full tank of gas is calculated by multiplying the cost per gallon by the number of gallons in the tank:
$2.76/gallon x 15 gallons = $41.40
Since each coworker is willing to pay for a quarter of the tank, this amounts to:
$41.40 / 4 = $10.35 per coworker
For each coworker, you save:
$10.35 - $2.76 = $7.59
Since there are 2 coworkers paying a quarter each, the total amount you save each month is:
2 coworkers x $7.59 = $15.18
Therefore, you save $15.18 each month by carpooling with your coworkers.
You owe $1,240.24 on a credit card with a 13.75% APR. You decide to pay $250.00/month toward paying off the credit card. How much is the difference in the interest paid after one month if you pay at the beginning of the month compared to paying at the end of the month?
To calculate the interest paid after one month for the credit card, first determine the daily periodic rate by dividing the annual percentage rate (APR) by the number of days in a year:
Daily Periodic Rate = 13.75% / 365 = 0.03767%
Next, calculate the interest accrued for the month if you pay at the beginning of the month. For the first part of the month, the balance is $1,240.24, and for the second part of the month, the balance is reduced to $990.24 after making a $250.00 payment:
Interest Accrued = ($1,240.24 x (0.03767% x 30)) + ($990.24 x (0.03767% x 21)) = $11.22 + $7.89 = $19.11
Now, calculate the interest accrued for the month if you pay at the end of the month. The balance remains $1,240.24 for the entire month:
Interest Accrued = $1,240.24 x (0.03767% x 30) = $13.32
The difference in interest paid after one month between paying at the beginning and end of the month is:
$13.32 - $19.11 = $5.79
Therefore, the difference in the interest paid after one month if you pay at the beginning of the month compared to paying at the end of the month would be $5.79.
You owe $958.62 on a credit card at a 9.7% APR. The minimum payment is $105.00. How much goes toward principal if you make the minimum payment at the end of the first month?
To calculate how much goes toward the principal when making the minimum payment at the end of the first month, we need to determine the interest accrued first.
First, calculate the interest accrued for the month:
Daily Periodic Rate = 9.7% / 365 = 0.02658%
Interest Accrued = $958.62 x (0.02658% x 30) = $7.18
Next, subtract the interest accrued from the minimum payment to find out how much of the minimum payment goes towards the principal:
Principal Payment = $105.00 - $7.18 = $97.82
Therefore, if you make the minimum payment of $105.00 at the end of the first month, $97.82 would go toward the principal, while the remaining $7.18 would go towards the interest accrued.
You owe $1,945.61 on a credit card that has an 11.2% APR. The minimum payment due is $156.00. You decide to pay $300.00. How much do you save in interest after one month by paying more than the minimum, assuming you make the payment at the beginning of the month?
To calculate how much you save in interest by paying more than the minimum payment and making the payment at the beginning of the month, we need to follow these steps:
1. Calculate the daily periodic rate:
Daily Periodic Rate = 11.2% / 365 = 0.03068%
2. Calculate the interest accrued for the month with the current balance of $1,945.61:
Interest Accrued = $1,945.61 x (0.03068% x 30) = $17.71
3. Calculate the new balance after making a payment of $300.00:
New Balance = $1,945.61 - $300.00 = $1,645.61
4. Calculate the interest accrued for the remaining balance after making the payment:
Interest Accrued = $1,645.61 x (0.03068% x 21) = $10.79
5. Compare the total interest accrued with the minimum payment ($156.00), which would have been $17.71, to the interest accrued after making the payment of $300.00 at the beginning of the month, which is $10.79:
Interest Saved = $17.71 - $10.79 = $6.92
Therefore, by paying $300.00 at the beginning of the month instead of the minimum payment of $156.00, you would save $6.92 in interest after one month.