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 $12,700 balance from your current credit card, which charges an annual rate of 20.5 percent, to a new credit card charging a rate of 11.1 percent. |
a. |
How much faster could you pay the loan off by making your planned monthly payments of $260 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 3 percent fee charged on any balances transferred? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
1.
=(-NPER(11.1%/12,-260,12700)+NPER(20.5%/12,-260,12700))=40.8846810141252
2.
=(-NPER(11.1%/12,-260,12700*(1+3%))+NPER(20.5%/12,-260,12700))=38.165360192784
Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is...
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 $13,500 balance from your current credit card, which charges an annual rate of 21.3 percent, to a new credit card charging a rate of 11.9 percent. How much faster could you pay the loan off by making your planned monthly payments of $300 with the new card? (Do not round intermediate...
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 $12,000 balance from your current credit card, which charges an annual rate of 18.6 percent, to a new credit card charging a rate of 8.2 percent. How much faster could you pay the loan off by making your planned monthly payments of $250 with the new card? What if there was...
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