Question (3.1) Gyarados had to go to Quick Cash Loans because they didn't have a credit score.
Question:
(3.1) Gyarados had to go to Quick Cash Loans because they didn't have a credit score. However, Dragonite has a decent credit score and has a credit card that charges 23 percent interest (as an annual rate), with interest compounded daily. This isn't a particularly great interest rate, but it's better than what Quick Cash Loans can offer. Suppose that Dragonite charges $500 to their credit card (the same amount that Gyarados borrows) for a total of 8 pay periods (using 14 days per pay period and 365 as the number of days in a year. Dragonite also is taking advantage of a special deal where the credit card allows no payments required (since they just opened the account). At the end of 8 pay periods, Dragonite can pay off the entire credit card balance by paying (...........)dollars, thus a total of (..........) dollars of interest was paid to the credit card company.
(3.2) Though Gyarados and Dragonite borrowed the same amount of money (500 dollars) for the same amount of time (8 pay periods), Gyarados paidmore dollars of interest than Dragonite did.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill