Peyton is planning to apply for a new credit card and is considering the following three choices. In addition, Peyton is also planning to buy a $500 big screen television and plans to pay for this over a two-year period by making equal monthly payments.

Credit Card Annual Interest Rate Annual Fee

MBNA True Line Master Card 8.99% $39

CIBC Select VISA Card (Low Rate) 13.99% $29

American Express Essential Credit Card 12.99% $0

1.What would be Peyton's monthly payments for using the MBNA True Line Master Card over a two-year period?

a.$23.75

b.$22.84

c.$23.77

d.$24.55

e.None of the Above

2.What would be Peyton's monthly payments for using the CIBC Select Visa card over a two-year period?

a.$23.75

b.$22.84

c.$24.00

d.$24.55

e.None of the Above

3.What would be Peyton's monthly payments for the American Express Essential Credit Card over a two-year period?

a.$23.75

b.$22.84

c.$23.77

d.$24.55

e.None of the Above

4.How much in interest charges would Payton pay using the American Express Essential Credit Card (Hint: Total Interest = (number of payments * amount of payments) - loan amount)?

a.$48.16

b.$69.94

c.$70.45

d.$55.75

e.None of the Above

5.How much in interest charges would Payton pay using the CIBC Select Visa card (Hint: Total Interest = (number of payments * amount of payments) - loan amount)?

a.$68.16

b.$79.94

c.$76.10

d.$75.75

e.None of the Above

6.How much in interest charges would Payton pay using the MBNA True Line Master Card (Hint: Total Interest = (number of payments * amount of payments) - loan amount)?

a.$48.16

b.$69.94

c.$70.45

d.$55.75

e.None of the Above

7.How much in total financing costs (interest costs and annual fees) for the MBNA True Line Master Card over the 2-year period (Hint: Total Financing Costs = Total Interest Costs + Total Annual Fees)?

a.$126.16

b.$129.94

c.$70.45

d.$112.75

e.None of the Above

8.How much in total financing costs (interest costs and annual fees) for the CIBC Select Visa card over the 2-year period (Hint: Total Financing Costs = Total Interest Costs + Total Annual Fees)?

a.$126.16

b.$129.94

c.$134.10

d.$112.75

e.None of the Above

9.How much in total financing costs (interest costs and annual fees) for the American Express Essential Credit Card over the 2-year period (Hint: Total Financing Costs = Total Interest Costs + Total Annual Fees)?

a.$126.16

b.$129.94

c.$70.45

d.$112.75

e.None of the Above

10.Based on your above calculations, which credit card should Payton apply for?

a.MBNA True Line Master Card

b.Desjardins Classic Visa

c.American Express Essential Credit Card

d.They are all the same costs