2. You owe $2,000 on a credit card that charges20% interest. You have $2,200 in your savingsaccount that earns 1.69% interest. Your savingsaccount charges $14.50 a month if you keep abalance of less than $1,500 a month. Comparethe amount of interest for both to decide whatyou should do about paying the credit card bill.Consider all factors in the decision. Show yourfor any calculations you may completed.In a brief paragraph, justify your decision, including adescription of all factors that would affect that decision.

Debt on Credit card = $2,000 Bank balance on Savings account = $2,200 SB Interest rate = 1.69%…

Answered: You owe $2,000 on a credit card that…

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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Similar questions

Camila Martinez has several credit cards, on which she is carrying a total current balance of $6,500. 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 Camila would pay to transfer the balance. $ Describe the benefits and drawbacks of balance transfer cards.
Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest charges, which are 1.8% per month on the unpaid balance. Find the interest charges if she moves the debt to a credit card charging 0.7% per month on the unpaid balance. What are the interest charges at 1.8% a month? What are the interest charges at 0.7% a month? What are the savings that using the 0.7% card brings over the 1.8% card?
Ee 332.
Mary uses her credit card frequently. Which of the following is the best strategy to minimize the amount of interest paid when using a credit card? Pay off the credit card balance monthly. ○ Search for and use a credit card with the lowest APR. Search for and use a credit card that compounds interest monthly. Pay more than the minimum monthly balance each month.
Sharla is comparing a credit plan to buying an appliance for cash. The sticker price is $1200. The down payment for the credit plan is 10% and then 24 monthly payments of $53.25. What is the cost of buying on credit?
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 6% APR and the following transactions? Note: Round your answer to the nearest cent. 31-day billing cycle 10/1 10/3 Previous balance Credit $ 1,164 10/12 Charge: King Soopers $ 79 $ 148 Credit 10/15 Payment $ 310 Credit 10/25 Charge: Delta $ 321 10/30 Charge: Holiday Fun $ 61 Answer is complete but not entirely correct. Amount owed $ 1,097.56×
Karen has a QuikTrip credit card. The card has a balance of $988.62 with an APR of 28.75%. The QuikTrip expects the minimum payment to be 4.1% of the balance. What is Karen’s minimum payment? How long will it take Karen to pay off her QuikTrip credit card? How much interest will Karen pay if she only pays the minimum payment? Show steps
If you owe $5,000 on a credit card that charges 18.99% apr and you decide to put no more charges on the account until it is paid off, how much money will you save if you make $200 payments vs $150 payments?
Give answer with proper explanation please. Hand written solutions are strictly prohibited.
You are comparing two banks. One bank is online and offers a savings account interest rate of 1.75% compounded quarterly. One bank is in your hometown and offers a savings account interest rate of 1.72% compounded daily. You have $4500 to keep in a savings account for 2 years, so you need to decide which bank would pay more interest. The online bank has an APY of what percentage? Round your percentage to three decimal places) 1.762 The hometown bank has an APY of what percentage? Round your percentage to three decimal places) 1.735 %. ✔ %. Therefore if you invest the same amount of money for the same amount of time, the bank that pays more interest is O Online bank O Hometown bank Enter a number. How much more interest would you earn at the bank you just selected compared to the other bank? State your result rounded to two decimal places. Hint: You will need to use the original investment information to calculate the interest earned on each account.
When you use a credit card, the credit card company charges a fee to the merchant, which ranges from 3% to 5%, on your purchase. Suppose you bought a high-definition TV for $310 and asked if the seller would give you a discount for paying cash. What might be a reasonable discount? A reasonable discount would be in the range of $__ to $__
If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 9% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun Amount owed $84 cr. $143 $260 cr. $316 $56 Check my $ 1,159

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