Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. 10.25/1 Points] DETAILS PREVIOUS ANSWERS BRECMBC9 13.1.020. On October 24, you plan to purchase a $1.500 computer by using one of your two credit

image text in transcribed
image text in transcribed
4. 10.25/1 Points] DETAILS PREVIOUS ANSWERS BRECMBC9 13.1.020. On October 24, you plan to purchase a $1.500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month The Gold Card darges 18 interest and calculates interest based on the average daily balance. Both cards have a balance as of October 1. The closing date is the end of the month for each card Your plan is to make a $500 payment in November, make a $500 payment in December, and pay off the remaining balance in January, All your payments will be received and posted on the 10th of each month No other charges will be made on the account. (Round your answers to the nearest cent) (a) Based on this information, calculate the interest (in 5) charged by each card for this purchase Silver Card 340 Gold Card AB b) which card is the better deal and by how much (5) The God and the better deal by $4062 . [0.25/1 Points) DETAILS PREVIOUS ANSWERS BRECMBC9 13.1.020. MY NOTES ASK YOUR TEACHER On October 24, you plan to purchase a $1,500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a 0 belance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $500 payment in November, make a $500 payment in December and pw off the remaining balance in January. All your payments will be recurved and posted on the 2000 each month. No other charges will be made on the account (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest in 5) charged by each card for this purchase. Silver Card $495.6 Gold Card 48.00 () Which card is the better deal and by how much (in)? The Gold Card the better deal by 0.62 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In Quantitative Analysis Of Finance And Accounting (Vol. 5)

Authors: Lee Cheng Few

1st Edition

9812706283, 9789812706287

More Books

Students also viewed these Accounting questions

Question

Why and how are people different from one another?

Answered: 1 week ago

Question

What changes, if any, are projected for this environment?

Answered: 1 week ago

Question

How have these groups changed within the last three years?

Answered: 1 week ago