You have two credit cards with an APR of 17% and 19% respectively. One card has a balance of $4,200 with a minimum payment of $65/month and the other has a balance of $3,295 with a monthly minimum of $60. You currently can only afford the minimum monthly payments.

a. Determine the total number of payments needed to pay off each credit card as separate bills.

b. Determine the total interest paid for each card and the percent interest paid for each card. 2. You just received a great advertisement in the mail to consolidate your debt. The advertisement indicated that you were approved for $8,000 at a rate of 7.75% for the first 2 years, then 21% thereafter. If you choose to move your debt (from question #4), you will be charged a one-time 3.5% transfer fee. Should you take the offer, why or why not? Give clear reasons and clearly state all calculations.

Answer rating: 100% (QA)

a For the first credit card with a balance of 4200 and a minimum payment of 65month at an APR of 17 the total number of payments needed to pay off the ... View the full answer