8 B D E F G H ! 1 2 You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 5 percent per year, compounded monthly for the first six months, increasing thereafter to 18.5 percent compounded monthly. Assuming you transfer the $7,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year? 5 6 7 8 First APR Periods for first APR Second APR Periods for second APR Balance transferred Months per year 0.5% 6 18.5% 6 7.000 12 10 11 $ 12 13 14 15 16 17 16 19 20 21 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. Balance in six months Balance in one year Accrued interest 32