Consider the excerpt from a credit card disclosure form below. Interest Rate and Interest Charges 6.99% or 10.99% introductory APR for one year, based on your creditworthiness. Annual Percentage Rate (APR) for Purchases After that your APR will be 15.99%. This APR will vary with the market based on the Prime Rate During the first year (while the introductory APR is still in effect), what is the approximate difference in total interest paid on an average balance of $1,300 by a customer with poor creditworthiness as compared to a customer with excellent creditworthiness?
Consider the excerpt from a credit card disclosure form below. Interest Rate and Interest Charges 6.99% or 10.99% introductory APR for one year, based on your creditworthiness. Annual Percentage Rate (APR) for Purchases After that your APR will be 15.99%. This APR will vary with the market based on the Prime Rate During the first year (while the introductory APR is still in effect), what is the approximate difference in total interest paid on an average balance of $1,300 by a customer with poor creditworthiness as compared to a customer with excellent creditworthiness?
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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Transcribed Image Text:3
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Consider the excerpt from a credit card disclosure form below.
Interest Rate and Interest Charges
6.99% or 10.99% introductory APR for one year, based
on your creditworthiness.
Annual
Percentage Rate
(APR) for
Purchases
After that your APR will be 15.99%. This APR will vary
with the market based on the Prime Rate
During the first year (while the introductory APR is still in effect), what is the
approximate difference in total interest paid on an average balance of $1,300 by al
customer with poor creditworthiness as compared to a customer with excellent
creditworthiness?
Make sure you.write down any work, calculations, or reasoning that you used to get
to your solution.
Your Answer:
Ammine
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