Loan rates of interest You have a credit card debt amounting to $50,000. The card charges you a 32% interest rate with monthly compounding. You believe that the interest rate of the existing debt is too high, so you decide to switch cards and move the outstanding balance on the old card to the new card. After doing some research, you find Cards A, B, and C as alternatives. If you move the existing debt to Card B or Card C, there will be extra charges (handling fees). Card B will charge $500, and Card C will charge $1,000 handling fees.

a. If you pay off the debt in 1 year with equal monthly amounts, how much interest payments have you saved by using (1) Card A, (2) Card B, and (3) Card C rather than keeping your existing card?

b. Which card should you choose?

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp