On October 25, you plan to purchase a $1,200 computer by using one of your two credit cards. The Silver Card charges 18% Interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% Interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $400 payment in November, make a $400 payment in December, and pay off the remaining balances in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in $) charged by each card for this purchase. Silver Card Gold Card (b) Which card is the better deal and by how much (in $)? The-Select vis the better deal by $
On October 25, you plan to purchase a $1,200 computer by using one of your two credit cards. The Silver Card charges 18% Interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% Interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $400 payment in November, make a $400 payment in December, and pay off the remaining balances in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in $) charged by each card for this purchase. Silver Card Gold Card (b) Which card is the better deal and by how much (in $)? The-Select vis the better deal by $
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 7EA: Homeland Plus specializes in home goods and accessories. In order for the company to expand its...
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