.Calculating the Number of Periods Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $12,000 balance from your current credit card, which charges an annual rate of 18.6 percent, to a new credit card charging a rate of 8.2 percent. How much faster could you pay the loan off by making your planned monthly payments of $250 with the new card? What if there was a 2 percent fee charged on any balances transferred?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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 65.Calculating the Number of Periods Your Christmas ski vacation was great, but it
unfortunately ran a bit over budget. All is not lost: You just received an offer in the
mail to transfer your $12,000 balance from your current credit card, which charges
an annual rate of 18.6 percent, to a new credit card charging a rate of 8.2 percent.
How much faster could you pay the loan off by making your planned monthly payments of $250 with the new card? What if there was a 2 percent fee charged on any
balances transferred?

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