In June, Jake and Jill sign up for a American Express credit…

In June, Jake and Jill sign up for a American Express credit card which has the following terms: Interest rate = 19% (compounded daily) Statement Cycle = June 15th – July 14th Grace Period = 22 days (bill due on 5th of the following month) Minimum payment = Greater of $25 or 2% statement balance Late fee = $35 On July 3, Jake and Jill make their only purchase with the card (new furniture for $1,200). They are struggling to understand how credit cards work. Help them answer the following three questions.   If Jake and Jill forget to make a payment by their due date (Aug. 5), what will be their credit card balance on August 6?

Sonya saved $15,000 last summer from working on a road const…

Sonya saved $15,000 last summer from working on a road construction crew in Montana. What a great job. She came back really tan. She wants to invest the full amount now so that in 10 years she can buy her dream car, which costs $30,000. What rate of return will she need to receive in order to accomplish this goal? 

Michael and Suzanne just got married, and they received $1,0…

Michael and Suzanne just got married, and they received $1,000 from a friend as a wedding gift. Instead of spending the money with reckless abandon, they have decided to put the whole sum in a savings account that earns 2% compounded annually. How much money will they have in the account after 10 years?