DETERMINATION OF INTEREST RATES. You decided to go and apply for a credit card at your local financial institution. The Prime rate currently announced was 3.25%. You have an excellent credit history and FICO score of 800. You were offered 17.99% interest rate for a rewards card that has cash back. How is each interest rate, which you and other borrowers receive from a lender or credit company, determined or calculated by the creditors or institution? 11) BALANCE TRANSFER. You have a few credit cards that you are currently paying the minimum payment on, which has high interest rates. You cannot pay it all off before the end of the month and as a result have only been paying the minimum. Recently you receive an offer for 0% balance transfer and think it is a good idea to transfer your balances from the various different credit cards in order to pay it off faster without any more interest or finance charges incurred. 11a) Explain how credit card companies make money on balance transfers (a minimum of 3 ways). 11b) Explain how you would use a balance transfer correctly and "win in the balance transfer game