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 $12,400 balance from your current credit card, which charges an annual rate of 20.2 percent, to a new credit card charging a rate of 10.8 percent. a. How much faster could you pay the loan off by making your planned monthly payments of $245 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 3 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 3 percent fee Che
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 $12,400 balance from your current credit card, which charges an annual rate of 20.2 percent, to a new credit card charging a rate of 10.8 percent. a. How much faster could you pay the loan off by making your planned monthly payments of $245 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 3 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 3 percent fee Che
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: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 $12,400 balance from your
current credit card, which charges an annual rate of 20.2 percent, to a new credit card
charging a rate of 10.8 percent.
a. How much faster could you pay the loan off by making your planned monthly
payments of $245 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 3 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 3 percent fee
Che
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