Balance transfer credit cards Zoe Robinson has several credit cards, on which she is carrying a total current balance of $6,000. Her current cards charge her 12% per year. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 4 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 6 months. Calculate the fee that Zoe would pay to transfer the balance. $ Describe the benefits and drawbacks of balance transfer cards.
Balance transfer credit cards Zoe Robinson has several credit cards, on which she is carrying a total current balance of $6,000. Her current cards charge her 12% per year. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 4 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 6 months. Calculate the fee that Zoe would pay to transfer the balance. $ Describe the benefits and drawbacks of balance transfer cards.
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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Balance transfer credit cards
Zoe Robinson has several credit cards, on which she is carrying a total current balance of $6,000. Her current cards charge her 12% per year. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 4 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 6 months. Calculate the fee that Zoe would pay to transfer the balance.
$
Describe the benefits and drawbacks of balance transfer cards.
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