Question: Problem 5 - 3 1 Calculating Interest Expense [ LO 4 ] You receive a credit card application from Shady Banks Savings and Loan offering

Problem 5-31 Calculating Interest Expense [LO 4]
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 4 percent per year, compounded monthly for the first six months, increasing thereafter to 18.9 percent per year, compounded monthly. Assuming you transfer the $19,500 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year?

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