Victory Visa, Magnificent Master Card, and Amazing Express are credit card companies that charge different interest on overdue accounts. VV charges 26 percent compounded daily, MMC charg 28 percent compounded weekly, and AE charges 30

Victory Visa, Magnificent Master Card, and Amazing Express are credit card companies that charge different interest on overdue accounts. VV charges 26 percent compounded daily, MMC charg 28 percent compounded weekly, and AE charges 30

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 4.8P

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Question

2.28 Victory Visa, Magnificent Master Card, and
Amazing Express are credit card companies that
charge different interest on overdue accounts. VV
charges 26 percent compounded daily, MMC charges
28 percent compounded weekly, and AE charges 30
percent compounded monthly. On the basis of interest
rate, which credit card has the best deal?

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