Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $15,000 balance from your current credit card, which charges an annual rate of 18.6 percent, to a new credit card charging a rate of 9.2 percent. a. How much faster could you pay the loan off by making your planned monthly payments of $275 with the new card? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if there was a fee of 2 percent charged on any balances transferred? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Number of months b. Number of months with 2 percent fee
Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $15,000 balance from your current credit card, which charges an annual rate of 18.6 percent, to a new credit card charging a rate of 9.2 percent. a. How much faster could you pay the loan off by making your planned monthly payments of $275 with the new card? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if there was a fee of 2 percent charged on any balances transferred? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Number of months b. Number of months with 2 percent fee
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
Transcribed Image Text:Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is
not lost: You just received an offer in the mail to transfer your $15,000 balance from your
current credit card, which charges an annual rate of 18.6 percent, to a new credit card
charging a rate of 9.2 percent.
a. How much faster could you pay the loan off by making your planned monthly
payments of $275 with the new card? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
b. What if there was a fee of 2 percent charged on any balances transferred? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
a. Number of months
b. Number of months with 2 percent fee
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education