Margie has had a tough month. First, she had dental work that cost $2700. Then, she had
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Margie has had a tough month. First, she had dental work that cost $2700. Then, she had major car repairs, which cost $2400. She put both of these unexpected expenses on her credit card. If she does not pay her balance when due, she will be charged 15 percent interest, compounded daily. Margie has $15000 in a money market account that pays 5 percent interest, compounded monthly. How much interest would she pay (annualized) if she does not pay off her credit card balance? How much interest will she lose if she transfers the money from her money market account? Should she transfer the money from her money market account?
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