On October 23, 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 balance 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 $)? On October 23, 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 thefirst 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. Theclosing 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 balance in January. All your payments will be received and posted onthe 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 $) charged by each card for this purchase.Silver CardGold Card$(b) Which card is the better deal and by how much (in $)?The Gold Card vis the better deal by $

The question doesn't define whether the rate is annually or monthly, so we are taking the rate as a…

Answered: On October 23, you plan to purchase a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 11EB: Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from...

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On October 23, 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 balance 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 $)?

On October 23, 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 balance 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 Gold Card v
is the better deal by $

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