1) How might credit card companies keep their cardholders in debt for a long time? What payment do the credit card companies expect your friend to make so that he never pays down the debt? 2) Can you find the interest rate if you know the annuity payments and a future value? Under what circumstances might you want to solve this kind of problem? Which equations would you use?

Answer rating: 100% (QA)

1 How Credit Card Companies Keep Cardholders in Debt Credit card companies can employ several strategies to keep cardholders in debt for a long time High Interest Rates Credit cards typically carry hi... View the full answer