On October 25, you plan to purchase a $1,500 computer by using one of your two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On October 25, you plan to purchase a $1,500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $500 payment in November, make a $500 payment in December, and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in $) charged by each card for this purchase. Silver Card Gold Card $ $ (b) Which card is the better deal and by how much (in $)? The --Select--- is the better deal by $ On October 25, you plan to purchase a $1,500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a $0 balance as of October 1. The closing date is the end of the month for each card. Your plan is to make a $500 payment in November, make a $500 payment in December, and pay off the remaining balance in January. All your payments will be received and posted on the 10th of each month. No other charges will be made on the account. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in $) charged by each card for this purchase. Silver Card Gold Card $ $ (b) Which card is the better deal and by how much (in $)? The --Select--- is the better deal by $
Expert Answer:
Answer rating: 100% (QA)
To calculate the interest charged by each card for the purchase of a 1500 computer well need to cons... View the full answer
Related Book For
Principles Of Financial Accounting
ISBN: 9781118757147
1st Canadian Edition
Authors: Jerry J. Weygandt, Michael J. Atkins, Donald E. Kieso, Paul D. Kimmel, Valerie Ann Kinnear, Barbara Trenholm, Joan E. Barlow
Posted Date:
Students also viewed these banking questions
-
Change Janets Schedule In Question 5 Above, You Calculated What The Schedule Would Look Like If Janet Had Made One $285.05 Payment In January 2022. You Did It By Hand, But The Bankrate Calculator Has...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
According to the law of sales contracts, all parties must act in good faith, which means they must act honestly. True/False
-
Five separate force-couple systems act at the corners of a metal block, which has been machined into the shape shown. Determine which of these systems is equivalent to a force F = (10 N)j and a...
-
An open feedwater heater in a power plant heats 4 kg/s water at 45C, 100 kPa by mixing it with steam from the turbine at 100 kPa, 250C, as in Fig. P4.107. Assume the exit flow is saturated liquid at...
-
What are the advantages of using the Internet to conduct preliminary job interviews? What problems is a company that uses computer-aided interviewing likely to encounter?
-
Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group...
-
A researcher would like to determine whether an over-the-counter herbal nasal spray has an effect on mental alertness for infants. A sample of n = 18 infants is obtained, and each baby is given a...
-
Aduke Zhawaki is a talented musician who runs a business teaching music and playing in gigs with a variety of other musicians. Her business is operated as a proprietorship, under the name A to Z...
-
The Economist (July 1, 1989) reported that the London Underground system was in crisis: the subway system carried 60% more passengers in 1987 - 88 than in 1982. Capacity, however, has increased but...
-
An 18-year-old student is referred by his general practitioner to the Emergency Department, suffering from pharyngitis, shortness of breath with wheeze and a morbilliform skin rash. Examination...
-
Suppose that you are given a fixed budget of $50,000 to email targeted ads for the bottle warmer and that you decide to set your models to a modestly conservative 60% probability threshold. What is...
-
RCT Instruments, Inc. operates in a highly competitive industry. The price its remote control device (switches) is stable at $ 140 each. The engineering department estimates the relevant total cost...
-
Rohan decides to invest in bonds instead of stocks because he has heard that bonds are a lower-risk investment. He uses the bond's credit rating to make his investment decisions. What is true about...
-
Variable Products Co. produces 3 products from a $4,500 joint process. These products can be processed further to form another set of 3 products. There are markets for all of the products. Data for...
-
For the given transfer function: Vo(s) / Vi(s) = (s^2C^2R^2 + 1) / (s^2C^2R^2 + 4sCR + 1) Assumiing that 1/(CR) = 120 PI so write the matlab code to find the magnitude plot
-
Mertsis Corporation issued $400,000 five-year bonds on April 1, 2011. Interest is paid semi- annually on April 1 and October 1 and the companys year end is March 31. Below is a partial amortization...
-
Campagner Company purchased equipment on account on September 3, 2012, at an invoice price of $210,000. On September 4, 2012, it paid $4,400 for delivery of the equipment. A one-year, $1,975...
-
Refer to the data given for Butters Company in BE95. Assume instead that the company uses the diminishing-balance method and that the diminishing-balance depreciation rate is double the straight-...
-
There are 24,627 species of fish on Earth. Decide whether the statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain clearly.
-
For a flight on a small plane, the pilot asks passengers what they weigh. Identify at least one likely source of random errors and also identify at least one likely source of systematic errors.
-
An American Airlines agent tells you that you must pay a surcharge because your checked bag weighs 23.018 kg, which exceeds the limit of 23 kg, and that theres no doubt that the scale is correct...
Study smarter with the SolutionInn App