7. The new violin Minerva wants is on sale for $6999.95, plus taxes of 13%. She can afford monthly payments of $550. She has two credit options: Use the store credit card, which charges 19.2% interest, compounded daily. As an incentive, the store will pay the taxes. Use her bank credit card, which charges 13.9% interest, compounded daily, and has no outstanding balance. Minerva should use the_____ credit card because it will cost less than the other one. I need the answers and some guidence for this question. Thank you very much for helping me.
7. The new violin Minerva wants is on sale for $6999.95, plus taxes of 13%. She can afford monthly payments of $550. She has two credit options: Use the store credit card, which charges 19.2% interest, compounded daily. As an incentive, the store will pay the taxes. Use her bank credit card, which charges 13.9% interest, compounded daily, and has no outstanding balance. Minerva should use the_____ credit card because it will cost less than the other one. I need the answers and some guidence for this question. Thank you very much for helping me.
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
Problem 1PS
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- 7. The new violin Minerva wants is on sale for $6999.95, plus taxes of 13%.
She can afford monthly payments of $550. She has two credit options:
- Use the store credit card, which charges 19.2% interest, compounded daily.
As an incentive, the store will pay the taxes.
- Use her bank credit card, which charges 13.9% interest, compounded daily, and has no outstanding balance.
Minerva should use the_____ credit card because it will cost less than the other one.
I need the answers and some guidence for this question. Thank you very much for helping me.
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