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Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the
| Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $15,000 balance from your current credit card, which charges an annual rate of 17.5 percent, to a new credit card charging a rate of 8.9 percent. |
| a. | How much faster could you pay the loan off by making your planned monthly payments of $250 with the new card? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What if there was a fee of 2 percent charged on any balances transferred? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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