Related questions
You are trying to decide between 2 credit cards. Credit card A has no annual fee
and an annual interest rate of 22.99%. Credit card B has an annual fee of $135 and an
annual interest rate of 18.99%.
a) To help you decide, determine the ‘equal-cost annual carried balance’:
At this annual carried amount, the card fees plus
interest are equal:
$
Card _____ is the better choice if my annual carried
balance amount is GREATER than:
$
Card _____ is the better choice if my annual carried
balance amount is LESS than:
What difference does compounding make?
You have a $10 000 debt. Calculate the interest and amount for each.
Interest
rate
Compounded Time Interest Amount
7% Simple (n/a) 3 years
7% Annually 3 years
7% Semi-annually 3 years
7% Monthly 3 years
7% Daily 3 years
Reflection: What do you notice? What do you wonder?
You find a $50 USD bill in one of your parent’s old coats and they let you keep it.
You decide to spend it on a pair of pants that normally cost $59.99 but are on sale for 30%
off. Of course, you will also have to pay HST. How much change (if any) will you get from
the $50 USD bill?
to generate a solution
a solution
- Under the current tax plan, the person pays 26% flat income tax on their salary. Under a proposed new system, the person would pay 31% on their salary above $12,000. The person pays $980 more under the new system than the old. What is the person's salary? Previous Page Narrow_forwardYour credit card has a balance of 5400 and an annual interest rate of 18%. You decide to pay off the balance over 2 yearsarrow_forwardAs one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) AmountFinanced InterestRate Termof Loan(years) MonthlyPI AnnualPropertyTax AnnualInsurance MonthlyPITI $230,000 9.50% 25 $ $6,573 $2,126 $arrow_forward
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