Question
On October 25, you plan to purchase a $1500 computer by using one of your two credit cards. The silver card charges 18% interest and
On October 25, you plan to purchase a $1500 computer by using one of your two credit cards. The silver card charges 18% interest and calculate interest based on the balance on the first day of the previous month. The gold card charges 18% interest in calculates interest based on the average daily balance. Both cards have a zero balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $500 payment in November, make a $500 payment in December and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made. Based on this information, calculate the interest in dollars charged by each card for this purchase. Silver card? Gold card?
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