Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs Card 1, $4,000, 21% Card 2, $5,500, 25%; and Card 3, $3,300, 17%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 22% per month on her credit card payments. This company charges 17.5% APR is the company's claim correct? Assume a 10-year repayment period. Mary's current minimum monthly payments are $ (Round to the nearest cent) Mary's minimum monthly payments after loan consolidation will be $ Is the company's claim correct? Choose the correct answer below KESED (Round to the nearest cent) OA. No because Mary's monthly credit card payments will decrease for less than 22% 8. Yes because Mary's monthly credit card payments will increase for more than 22% OC. Yes because Mary's monthly credit card payments will decrease for more than 22% O Nobecaune Man's monthly credit card payments will increase for less than 22%
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs Card 1, $4,000, 21% Card 2, $5,500, 25%; and Card 3, $3,300, 17%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 22% per month on her credit card payments. This company charges 17.5% APR is the company's claim correct? Assume a 10-year repayment period. Mary's current minimum monthly payments are $ (Round to the nearest cent) Mary's minimum monthly payments after loan consolidation will be $ Is the company's claim correct? Choose the correct answer below KESED (Round to the nearest cent) OA. No because Mary's monthly credit card payments will decrease for less than 22% 8. Yes because Mary's monthly credit card payments will increase for more than 22% OC. Yes because Mary's monthly credit card payments will decrease for more than 22% O Nobecaune Man's monthly credit card payments will increase for less than 22%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,000, 21%
Card 2, $5,500, 25%; and Card 3, $3,300, 17%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary
22% per month on her credit card payments. This company charges 17.5% APR. Is the company's claim correct? Assume a 10-year repayment period
Mary's current minimum monthly payments are 5 (Round to the nearest cent)
Mary's minimum monthly payments after loan consolidation will be $
is the company's claim correct? Choose the correct answer below
KUCED
(Round to the nearest cont.)
OA. No because Mary's monthly credit card payments will decrease for less than 22%
OB. Yes because Mary's monthly credit card payments will increase for more than 22%
OC. Yes because Mary's monthly credit card payments will decrease for more than 22%
R. No because Mary's monthly credit card payments will increase for less than 22%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff79b7d67-6ae1-4ed0-83a8-f56dca820dbf%2F0f388b8d-34d0-449a-8ede-55565ebdb9fe%2Fjq9bfo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,000, 21%
Card 2, $5,500, 25%; and Card 3, $3,300, 17%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary
22% per month on her credit card payments. This company charges 17.5% APR. Is the company's claim correct? Assume a 10-year repayment period
Mary's current minimum monthly payments are 5 (Round to the nearest cent)
Mary's minimum monthly payments after loan consolidation will be $
is the company's claim correct? Choose the correct answer below
KUCED
(Round to the nearest cont.)
OA. No because Mary's monthly credit card payments will decrease for less than 22%
OB. Yes because Mary's monthly credit card payments will increase for more than 22%
OC. Yes because Mary's monthly credit card payments will decrease for more than 22%
R. No because Mary's monthly credit card payments will increase for less than 22%
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