Assume that you have a $22,500 balance on your credit card. You plan to make monthly payments of $450 until the balance is paid off. The interest rate on your credit card is 17.5% p.a., compounded monthly. A letter in the mail informs you that you are approved for a new credit card and balance transfers are subject to a 9.5% p.a., compounded monthly. How many months sooner will you pay off your bill?

Answer rating: 100% (QA)

To determine how many months sooner you will pay off your credit card bill by transferring the balan... View the full answer