Margie has had a tough month. First, she had dental work that cost $ 700. Next, she had her car transmission rebuilt, which cost $ 1,400. She put both of these unexpected expenses on her credit card. If she does not pay her credit card balance when due, she will be charged 15% interest. Margie has $ 15,000 in a money market account that pays 5% interest. How much interest would she pay (annualized) if she does not pay off her credit card balance? How much interest will she lose if she writes the check out of her money market account? Should she write the check?
Answer to relevant QuestionsTroy has a credit card that charges 18% on outstanding balances and on cash advances. The closing date on the credit card is the first of each month. Last month Troy left a balance on his credit card of $ 200. This month ...Explain how the Sampsons’ credit card decisions are related to their budget. What is the purpose of the annual percentage rate measurement? Could lenders with the same interest rates report different APRs? What are the advantages and disadvantages of leasing a car? Give some advice for someone considering leasing. Explain how collateral works. Do all loans have collateral? What is the relationship between collateral and interest rates?
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