A = Cash back: Interest - cash back: S Christine would pay 4. Christine is a fashion designer. She is buying $3000 worth of fabric to make samples for a show. She will pay off her balance 120 d after the grace period. She is comparing two no-fee credit cards. APR credit limit Card 1 Card 1 17.99% 4000 Card 2 16.9% a) Christine will use the cash back to pay the interest. What interest would she pay on each card? Card 2 $6000 cash 1.5% on 1% on back purchases purchases b) Which credit card should Christine choose? Explain how you decided. 5. James wants to buy a large flat-screen TV. He cannot afford to pay cash and does not have a job. What would you advise James to do? C
A = Cash back: Interest - cash back: S Christine would pay 4. Christine is a fashion designer. She is buying $3000 worth of fabric to make samples for a show. She will pay off her balance 120 d after the grace period. She is comparing two no-fee credit cards. APR credit limit Card 1 Card 1 17.99% 4000 Card 2 16.9% a) Christine will use the cash back to pay the interest. What interest would she pay on each card? Card 2 $6000 cash 1.5% on 1% on back purchases purchases b) Which credit card should Christine choose? Explain how you decided. 5. James wants to buy a large flat-screen TV. He cannot afford to pay cash and does not have a job. What would you advise James to do? C
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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B and 5
Transcribed Image Text:A =
Cash back:
Interest - cash back: $
Christine would pay
4. Christine is a fashion designer.
She is buying $3000 worth of fabric
to make samples for a show. She
will pay off her balance 120 d after
the grace period. She is comparing
two no-fee credit cards.
Card 1
Card 2
16.9%
APR
credit
limit
Card 1
17.99%
4000
cash
1.5% on
1% on
back purchases purchases
a) Christine will use the cash back to pay the interest.
What interest would she pay on each card?
Card 2
132 Apprenticeship and Workplace 11
$6000
b) Which credit card should Christine choose? Explain how
you decided.
5. James wants to buy a large flat-screen TV. He cannot afford
to pay cash and does not have a job. What would you advise
James to do?
NEL
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