To finance your vacation, you needed to borrow $2000 Your options are to charge the amount on a credit card or to borrow on a line of credit The credit card company charges interest at 15 9 compounded monthly, and for the line of credit the bank charges 11 5 compounded monthly Even though monthly p...

Credit card Set P Y C Y 12 2000 PV 159 ...

To finance your vacation, you needed to borrow $2000. Your options are to charge the amount on

Question:

To finance your vacation, you needed to borrow $2000. Your options are to charge the amount on a credit card or to borrow on a The credit card company charges interest at 15.9% compounded monthly, and for the the bank charges 11.5% compounded monthly. Even though monthly payments are normally required, if you made no payments during the next two years, then decided to repay the entire amount, which option charges you the least and by how much?
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...