Question
#10 (20 points) Your Thanksgiving ski vacation was great, but unfortunately it ran a bit over budget. All is not lost. You just received an
#10 (20 points) Your Thanksgiving ski vacation was great, but unfortunately it ran a bit over budget. All is not lost. You just received an offer in the mail to transfer your $9,000 balance from your present credit card that charges you an annual rate (APR) of 21.6 percent to a new credit card charging an APR of 9.0 percent. a. How much faster could you pay off the credit card balance by making your planned monthly payments of $200 with the new card? b. What is the total amount of interest you will pay on the $9000 balance if you repay it at $200 per month at your original 21.6 percent interest rate? c. If you want to pay off your entire $9,000 balance within one year, at the 9.0 percent APR, what must your monthly payment be?
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