3. Allan is buying new equipment for his home office for $15 600. He can afford

payments of $1300 each month. Which credit card would cost less to use, if neither card has an outstanding balance? Explain.

The Silver card has an interest rate of 18.6%, compounded daily, and Allan

will receive 2% cash back on purchases at the end of a year.

The Gold card has an interest rate of 17.5%, compounded daily. A. Use the Gold card, because it costs $122.35 less than the Silver card. B. Use the Silver +card, because it costs $1497.12. C. Use the Gold card, because the interest rate is less.

D. Use the Silver card, which costs $189.66 less than the Gold card.

I need help and the answers I don't understand.