Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
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, 19\%; Card 2, \$5,800, 22\%, and Card 3 , $3,300,15%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 18% 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. A. No because Mary's monthly credit card payments will decrease for less than 18%. B. Yes because Mary's monthly credit card payments will decrease for more than 18%. C. Yes because Mary's monthly credit card payments will increase for more than 18%. D. No because Mary's monthly credit card payments will increase for less than 18%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

=+16.5. About Theorem 16.8:

Answered: 1 week ago