On October 24, you plan to purchase a$1500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of theprevious month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a s0 balance as of October 1. The closing date is the end of themonth for each card.Your plan is te make a 00 payment in November, make a500 payment in December, and pay off the remaining balance in January, All your payments will be received and posted en the 1oth ofeach month. No other tharges will be made on the acount. (Round your answers to the nearest cent.)(a) Based on this information, calculate the interest (in s) charged by each card for this purchaseSilver CardGold Card(b) Which card is the better deal and by how much (in $)7The Goid Card s the better deal by s49 02

As per the information provided: Date Cash flow Net balance 1-Oct 0 0 24-Oct -$1500…

Answered: On October 24, you plan to purchase…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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