Suppose you had a balance of $5000 on a credit card charging interest at a rate of

Question:

Suppose you had a balance of $5000 on a credit card charging interest at a rate of 13.99% per annum. If you were able to borrow this amount on an unsecured charging 7% instead, how much interest would you save over six months?
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...