Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,500, 21%; Card 2, 55,700, 24%, and Card 3, $3,200, 18%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 25% per month on her credit card payments. This company charges 16.5% APR. Is the company's claim correct? Assume a 10-year repayment period. Mary's current minimum monthly payments are $ (Round to the nearest cent.) Mary's minimum monthly payments after loan consolidation will be $ (Round to the nearest cent.) Is the company's claim correct? Choose the correct answer below. O A. Yes because Mary's monthly credit card payments will increase for more than 25%. JO B. No because Mary's monthly credit card payments will decrease for more than 25%. OC. No because Mary's monthly credit card payments will increase for more than 25%. OD. Yes because Mary's monthly credit card payments will decrease for more than 25%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started