Question: You have just received a notification that you can apply for a new credit card that charges only 3.99% per annum. When you examine the

You have just received a notification that you can apply for a new credit card that charges only 3.99% per annum. When you examine the offer, you realize that the low rate is only for the first two months, and then the rate increases to 19.99%. If you transferred the $5000 balance to the new card, how much interest would you have to pay? Should you apply for the new credit card?

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