HomeworkLib
Question

Your trip to Galapagos Islands was great, but it unfortunately ran a bit over budget. All...

Your trip to Galapagos Islands was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $12,000 balance from your current credit card, which charges an annual rate of 18.0 percent, to a new credit card charging a rate of 8.9 percent. How much faster could you pay the loan off by making your planned monthly payments of $250 with the new card? What if there was a fee of 2 percent charged on any balances transferred?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Time taken to pay the loan at original rate in months    85.50   
Time taken to pay the loan at new rate 59.55
Difference 25.95
Time taken to pay the loan at new rate and fee 61.06
Difference 24.44

Workings

0 0
Add a comment
Know the answer?
Add Answer to:
Your trip to Galapagos Islands was great, but it unfortunately ran a bit over budget. All...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an...

    Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $12,000 balance from your current credit card, which charges an annual rate of 18.6 percent, to a new credit card charging a rate of 8.2 percent. How much faster could you pay the loan off by making your planned monthly payments of $250 with the new card? What if there was...

  • Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is...

    Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $13,500 balance from your current credit card, which charges an annual rate of 21.3 percent, to a new credit card charging a rate of 11.9 percent. How much faster could you pay the loan off by making your planned monthly payments of $300 with the new card? (Do not round intermediate...

  • Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is...

    Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $12,700 balance from your current credit card, which charges an annual rate of 20.5 percent, to a new credit card charging a rate of 11.1 percent. a. How much faster could you pay the loan off by making your planned monthly payments of $260 with the new card? (Do not round...

  • You just received an offer in the mail to transfer the $5,000 balance from your current...

    You just received an offer in the mail to transfer the $5,000 balance from your current credit card, which charges an annual rate of 18.7 percent, to a new credit card charging a rate of 7.9 percent. You plan to make payments of $250 a month on this debt. How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card? A) 2.48 payments B) 2.63 payments C) 3.10...

  • Dr. Victoria van der Walt has to decide how to handle a complaint letter from a...

    Dr. Victoria van der Walt has to decide how to handle a complaint letter from a customer. When she received the letter, she passed it along to Paul Zimbalist, the firm’s customer ser- vice manager, to get his recommendation. Now van der Walt has a reply from Zimbalist, and she must decide how to re- spond to the customer and determine if changes are needed in her company’s customer service operations. Dr. van der Walt has a reputation as a...

  • Will facebook be able to have a successful business model without invading privacy? explain your answer?...

    Will facebook be able to have a successful business model without invading privacy? explain your answer? could facebook take any measures to make this possible? BUSINESS PROBLEM-SOLVING CASE Facebook Privacy: Your Life for Sale Facebook has quickly morphed from a small, niche haps most obviously. Facebook allows you to keep in networking site for mostly Ivy League college stu- touch with your friends, relatives, local restaurants, dents into a publicly traded company with a market and, in short, just about...

  • Can Technology Save Sears? Sears, Roebuck used to be the largest retailer in the United States, w...

    Can Technology Save Sears? Sears, Roebuck used to be the largest retailer in the United States, with sales representing 1 to 2 percent of the U.S. gross national product for almost 40 years after World War II. Since then, Sears has steadily lost ground to discounters such as Walmart and Target and to competitively priced specialty retailers such as Home Depot and Lowe’s. Even the merger with Kmart in 2005 to create Sears Holding Company failed to stop the downward...

  • What are the differentiating features of banks that target ethnic communities? (Bullet point answers please). United...

    What are the differentiating features of banks that target ethnic communities? (Bullet point answers please). United Commercial Bank and El Banco17CASE 2.1 This telling of the story of two special banks originally was prepared by students in 2007 who were engaged by the notion of two banks that had developed separate strategies for serving two niche markets. As you first read the students’ story, ask yourself, what could have gone wrong with each bank? Also, as you read, keep a...

  • SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the...

    SYNOPSIS The product manager for coffee development at Kraft Canada must decide whether to introduce the company's new line of single-serve coffee pods or to await results from the product's launch in the United States. Key strategic decisions include choosing the target market to focus on and determining the value proposition to emphasize. Important questions are also raised in regard to how the new product should be branded, the flavors to offer, whether Kraft should use traditional distribution channels or...

  • And there was a buy-sell arrangement which laid out the conditions under which either shareholder could...

    And there was a buy-sell arrangement which laid out the conditions under which either shareholder could buy out the other. Paul knew that this offer would strengthen his financial picture…but did he really want a partner?It was going to be a long night. read the case study above and answer this question what would you do if you were Paul with regards to financing, and why? ntroductloh Paul McTaggart sat at his desk. Behind him, the computer screen flickered with...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT