On October 25, you plan to purchase a $1,800 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $600 payment in November, make a $600 payment in December, and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in $) charged by each card for this purchase. Silver Card $ 490,32 Gold Card $ 538.76 (b) Which card is the better deal and by how much (in $)? The Gold Card v is the better deal by $ 48.84 X .
On October 25, you plan to purchase a $1,800 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $600 payment in November, make a $600 payment in December, and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in $) charged by each card for this purchase. Silver Card $ 490,32 Gold Card $ 538.76 (b) Which card is the better deal and by how much (in $)? The Gold Card v is the better deal by $ 48.84 X .
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
Related questions
Question
![On October 25, you plan to purchase a $1,800 computer by using one of your
two credit cards. The Silver Card charges 18% interest and calculates interest
based on the balance on the first day of the previous month. The Gold Card
charges 18% interest and calculates interest based on the average daily
balance. Both cards have a $0 balance as of October 1. The closing date is the
end of the month for each card.
Your plan is to make a $600 payment in November, make a $600 payment in
December, and pay off the remaining balance in January. All your payments will
be received and posted on the 10th of each month. No other charges will be
made on the account. (Round your answers to the nearest cent.)
(a) Based on this information, calculate the interest (in $) charged by each card
for this purchase.
Silver Card
$ 490.32
Gold Card
$ 538.76
(b) Which card is the better deal and by how much (in $)?
The Gold Card
is the better deal by $ 48.84
X .](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a7ba5c7-fc84-45c4-83b3-c9fbf16a75a6%2Fc6542b79-19c4-4255-a9bc-876be8ed1028%2Fzqbzx9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On October 25, you plan to purchase a $1,800 computer by using one of your
two credit cards. The Silver Card charges 18% interest and calculates interest
based on the balance on the first day of the previous month. The Gold Card
charges 18% interest and calculates interest based on the average daily
balance. Both cards have a $0 balance as of October 1. The closing date is the
end of the month for each card.
Your plan is to make a $600 payment in November, make a $600 payment in
December, and pay off the remaining balance in January. All your payments will
be received and posted on the 10th of each month. No other charges will be
made on the account. (Round your answers to the nearest cent.)
(a) Based on this information, calculate the interest (in $) charged by each card
for this purchase.
Silver Card
$ 490.32
Gold Card
$ 538.76
(b) Which card is the better deal and by how much (in $)?
The Gold Card
is the better deal by $ 48.84
X .
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