Figure 25.1- Annual Percentage Rate for Monthly Payments Finance Charge per $100 Borrowed at Various Interest Rates Number of Monthly 7.0% 7.5% 8.0% 8.5% 9.0% Payments 6 $2.05 $2.20 $2.35 $2.49 $2.64...

You have an unpaid balance of $100 on a credit card and plan to pay off the balance in 12 months. Your credit card company charges you 9% interest per year. You transfer the balance to a card that charges only

7% per year and plan to pay off the balance in 6 months. Use the table in Figure 25.1 to calculate the difference in the total charge for interest.

Figure 25.1- Annual Percentage Rate for Monthly Payments<br>Finance Charge per $100 Borrowed at Various Interest Rates<br>Number of Monthly<br>7.0%<br>7.5%<br>8.0%<br>8.5%<br>9.0%<br>Payments<br>6<br>$2.05<br>$2.20<br>$2.35<br>$2.49<br>$2.64<br>12<br>$3.83<br>$4.11<br>$4.39<br>$4.66<br>$4.94<br>18<br>$5.63<br>$6.04<br>$6.45<br>$6.86<br>$7.28<br>24<br>$7.45<br>$8.00<br>$8.55<br>$9.09<br>$9.64<br>30<br>$9.30<br>$9.98<br>$10.66<br>$11.35<br>$12.04<br>

Extracted text: Figure 25.1- Annual Percentage Rate for Monthly Payments Finance Charge per $100 Borrowed at Various Interest Rates Number of Monthly 7.0% 7.5% 8.0% 8.5% 9.0% Payments 6 $2.05 $2.20 $2.35 $2.49 $2.64 12 $3.83 $4.11 $4.39 $4.66 $4.94 18 $5.63 $6.04 $6.45 $6.86 $7.28 24 $7.45 $8.00 $8.55 $9.09 $9.64 30 $9.30 $9.98 $10.66 $11.35 $12.04

Jun 11, 2022

SOLUTION.PDF

Figure 25.1- Annual Percentage Rate for Monthly Payments Finance Charge per $100 Borrowed at Various Interest Rates Number of Monthly 7.0% 7.5% 8.0% 8.5% 9.0% Payments 6 $2.05 $2.20 $2.35 $2.49 $2.64...

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