Joey Realizes That He Has Charged Too Much on His

question 64

Multiple Choice

Joey realizes that he has charged too much on his credit card and has racked up $4,000 in debt. If he can pay $200 each month and the card charges 20 percent APR (compounded monthly) , how long will it take him to pay off the debt?

• A) 17.40 months
• B) 20.00 months
• C) 24.04 months
• D) 24.53 months

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Definitions:

Price-earnings Ratio

A valuation metric for companies, calculated by dividing the current market price of a stock by its earnings per share (EPS).

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, typically expressed as a percentage.

Earnings per Share

A financial ratio that measures the amount of net income earned per share of common stock. It is an indicator of a company's profitability.

Dividend Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.