G Today is May 2, 2011 and you have a balance of 10,000 on your Menlo Visa credit card, which charges 8% APR compounded monthly. Your payments are at the end of each month. a. What is the effective annual interest rate on your Visa card? b. If you pay $250 each month, how much will you owe on January 1, 2012 (ie, right after your eighth payment)? You just received a letter from Atherton Master Card, which offers you 0% interest on your balance transfers until the end of the year. If you decide to transfer money, they will charge you transfer fee - 5% of trasnferred amount, paid immediately, and then you will have to make a minimum payment of $100 at the end of each month. N N e. If ench month you make only the minimum payment and then on December 31 pay the remaining balance, what your effective annual rate will be? d. Should you transfer your debt to Atherton Master Card? Explain. Loan APR rite fee holding period Payment Menlo Visa Atherton Mastercard $ 10,000.00 $ 10.000.00 8.00% 0.0096 39 8 8 months $ (250,00) 5 (100.00) a. What is the effective manual interest rate on your Visa card? Score Maximum Score Effective Annual Rate 0 b. If you pay $250 each month, how much will you owe on January 1, 2012 (i.e., right after your eighth payment)? Balance 0 5 c. If each month you pay only the minimum and then on December 31 you pay the remaining balance, what your effective anal rate will be? Monthly rate 0 d. Should you transfer your debt to Atherton Master Card? Explain. should chose to