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Look at these two competing credit card offers: table [ [ Offer A , Offer B ] , [ table [ [ $
Look at these two competing credit card offers:
tableOffer Offer Btable$ annual fee interest for the first year interestthereafterExtra travel miles interest on CashAdvanceDiscount on travel insurance$ free credit when signing up day grace periodNo minimum paymenttableNo annual fee interest rate interest on CashAdvance grace periodMinimum payment of $ or of balance$ penalty charge for missing a payment
a Describe a situation where Offer A would be a better deal and a situation where Offer B would be a better deal.
b Suppose you charge $ to one of these cards. Assuming that interest is compounded monthly, under which card would you be better off if you don't pay anything
i For months
ii For year
iii. For years
c Show your calculations and any assumptions you made for your answer to part b
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