1. You are trying to decide between 2 credit cards. Credit card A has no annual fee and an annual interest rate of 22.99%. Credit card B has an annual fee of $135 and an annual interest rate of 18.99%. What is the annual cost on a $2300.00 purchase? Card A Card B Which card would you choose? Explain. es 2a. You decide to purchase a new touchscreen Chromebook. The price is listed at $499.99 but the salesperson tells you that everything in the store is 25% off today. What is the total price that you pay for the Chromebook (including 8% Tax)?

1. You are trying to decide between 2 credit cards. Credit card A has no annual fee and an annual interest rate of 22.99%. Credit card B has an annual fee of $135 and an annual interest rate of 18.99%. What is the annual cost on a $2300.00 purchase? Card A Card B Which card would you choose? Explain. es 2a. You decide to purchase a new touchscreen Chromebook. The price is listed at $499.99 but the salesperson tells you that everything in the store is 25% off today. What is the total price that you pay for the Chromebook (including 8% Tax)?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter6: Using Credit

Section: Chapter Questions

Problem 7FPE

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Similar questions

You have a credit card with an APR of 16%, compounded monthly, that has a balance of $7,000. You want to transfer this balance to a different card with an APR of 14.5%, compounded monthly. Assuming that you will make the minimum payments of $150 per month for either card, what transfer fee would make you ambivalent between transferring or not?
COMPARING APR. You are offered two credit cards. The first is a credit card (CARD A) that has an APR of 24.99%. You are also offered a card (CARD B) that has 21.99% interest, but charges $100 annually. Which card that was offered is a better card? Show work.
At the Central Furniture Company, customers who buy on credit pay an effective annual interest rate of 16.1%, based on monthly compounding. (a) What is the nominal annual interest rate that they pay? (b) Research the effective annual interest rates charged on a credit card that you or a friend has. How does the rate change if there is a late or skipped payment? What drives these rates? Are the rates ethical? Why or why not?
You just received an offer in the mail to transfer the $5,000 balance from your current credit card, which charges an annual rate of 18.7 percent, to a new credit card charging a rate of 7.9 percent. You plan to make payments of $250 a month on this debt. How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card? Group of answer choices 2.48 3.10 2.86 2.79 2.64
Having maxed out one credit card, the consumer is tempted by an offer of a second credit card (fromanother bank) at 24% APR with a $7500 limit. A service may pay off all the loans – say $25,000 worth so that the consumer now only has one debt to pay – the one to the consolidation service. The difference is that they may now only pay 12% APR (1% a month) so that instead of paying $500 a month (2% of $25,000) to simply pay the interest, they will be able to pay off the loan. a. How many months will it take to pay off the $25,000 loan at $500 per month at 12% APR compounded monthly?b. When the loan is paid off, how much interest has gone to the Debt Consolidation Service?
You see that First National Bank is willing to make you a four-year $40,000 car loan with an interest rate of 4.2%. However, the same bank will charge you 16.5% interest on a credit card that it issues. Why is the interest rate on the credit card so much higher than the interest rate on the car loan?
You just received your first credit card and decided to purchase a new Apple iPad. Youcharged the iPad’s $500 purchase price on your new credit card. Assume that the nominalinterest rate on the credit card is 18% and that interest is compounded monthly.The minimum payment on the credit card is only $10 a month. If you pay the minimum andmake no other charges, how long will it take you to fully pay off the credit card?
Sharla is comparing a credit plan to buying an appliance for cash. The sticker price is $1200. The down payment for the credit plan is 10% and then 24 monthly payments of $53.25. What is the cost of buying on credit?
On excel You plan on purchasing a car for $28,500. The car dealer tells you that if you finance it through them at a nominal interest rate of 6%, they will give you $1500 cash back (so, your actual loan is only for $27,000). You know you can get a full-priced loan at the local credit union at a nominal interest rate of 2.9%. Both loans will have monthly payments and will be 4 yrs in length. a. Compute the month rate for each loan b. Compute the amount of interest you pay for each loan
I need help with answering question B: A car loan offered by Bank One requires quarterly payments and has an APR of 4.8 percent, whereas a the same loan amount may be obtained from Bank Two at an APR of 5 percent with monthly payments. Which loan would you choose and why?
You owe $2,000 on a credit card that charges 20% interest. You have $2,200 in your savings account that earns 1.69% interest. Your savings account charges $14.50 a month if you keep a balance of less than $1,500 a month. Compare the amount of interest for both to decide what you should do about paying the credit card bill. Consider all factors in the decision. Show your for any calculations you may completed. In a brief paragraph, justify your decision, including a description of all factors that would affect that decision.
Which is a better choice in buying a computer worth $12,700.00? Choose from the following options: 1. Borrow from a lending firm offering 12% compounded quarterly payable in 1 year and 6 months2. Avail of the instalment plan which requires payment of $850.00 a month for 18 months3. Borrow from a lending firm offering 12% compounded monthly payable in 1 year and 6 months4. Borrow from a lending company that charges 12 1/4% simple interest payable in 1 year and 6 months