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Q13) Now assume that you are a home buyer and you want to apply for a loan. You have three credit cards. You would like
Q13) Now assume that you are a home buyer and you want to apply for a loan. You have three credit cards. You would like to transfer the balance in account \#2 to account \#3 in order to save the membership fee and because the interest charges for account \#2 are higher than the others. If you do this account \#2 would be closed. Here are the limits and the outstanding balances for the three cards Calculate a. How much credit capacity are you currently using? b. If you cancel account #2 and transfer the balance to account \#3, what will be the capacity used now? c. After the transfer, how much would an increase in the total credit limit have to be in account \#3 to restore the total capacity used in all accounts prior to the transfer
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