skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

Jim Norton, an engineering junior, was mailed two guaranteed line-of-credit applications from two different banks. Each bank offered a different annual fee and finance charge.
Jim expects his average monthly balance after payment to the bank to be $300 and plans to keep the credit card he chooses for only 24 months. (After graduation, he will apply for a new card.) Jims interest rate on his savings account is 6% compounded daily. The following table lists the terms of each bank:

Terms

Bank A

Bank B

Annual fee

$20

$30

Finance charge

1.55%

16.5%

monthly interest rate

annual percentage rate

(a) Compute the effective annual interest rate for each card.
(b) Which banks credit card should Jim choose?
(c) Suppose Jim decided to go with Bank B and used the card for one year. The balance after one year is $1,500. If he makes just a minimum payment each month (say, 5% of the unpaid balance), how long will it take to pay off the card debt? Assume that he will not make any new purchases on the card until he pays off the debt.
Jim expects his average monthly balance after payment to the bank to be $300 and plans to keep the credit card he chooses for only 24 months. Jims interest rate on his savings account is 6% compounded daily….

e effective annual interest rate for card of bank A is 18.6 1.05 = 17.55 percent and for bank B, it is 16.5 1.05 = 15.45 percent

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®

Back To Top