﻿ Your Christmas ski vacation was great but it unfortunately rana bit over budget. All is not lost Y
X

### Question

Your Christmas ski vacation was great, but it unfortunately rana bit over budget. All is not lost: You just received an offer inthe mail to transfer your \$12,500 balance from your current creditcard, which charges an annual rate of 20.3 percent, to a new creditcard charging a rate of 10.9 percent.

How much faster could you pay the loan off by making yourplanned monthly payments of \$250 with the new card? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.) Number ofmonths?_____

What if there was a 1 percent feecharged on any balances transferred? Number ofmonths_____?

### Solution

xxxx 1 : PV= \$xx,xxx xx= \$x I/Y= xx.x/xx, 1.6916667 xxx= -\$xxx x= ?Number xx months xx xxx.xxxxxx x. PV= \$xx,xxx FV= \$x x/Y= xx.x/xx, 0.90833, xxx= -\$250 x=? xxxxxx xx months xx 66.83.

Card x xxxx x% balance xxxxxxxx fee. xxxxx*x.xx = xx,xxx, PV=\$12,625 xx= \$0 x/Y= xx.x/xx, .xxxxxxxxx PMT= -\$xxx N= ? xxxxxx xxxxxxxx is xx.xx