Question: please help me solve it 1. You keep a minimum balance of $2500 in your bank account at all times to avoid the monthly service

please help me solve it
please help me solve it 1. You keep a minimum balance of

1. You keep a minimum balance of $2500 in your bank account at all times to avoid the monthly service charges of \$14.95. Last month you only made the minimum payment on your credit card, leaving a balance owing of $1105.36. a) Your credit card charges 28% interest, so how much interest will it charge on the balance of $1105.36 over a one-month period? b) If your bank account pays 1.45% interest per year, how much interest will you earn on a balance of $1105.36 ? c) How much would you save by paying off the credit card with the money in your bank account? (Don't forget to consider the service charges on the account.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!