Mathematics, 15.12.2019 15:31 kashbaby
Tony wants to pay off his credit card balances within 12 months. he is trying to decide if he should use his $1,000 in savings to pay off part of the balances or if he should transfer the balances to a new card with a low introductory rate. the new credit card has an introductory rate of 7% but charges a balance transfer fee of $75 for each balance transfer. evaluate tony's options and recommend the debt management plan that would give him the lowest monthly payment.
credit card a: $794
credit card b: $579
a.
pay off credit card b using the savings. transfer the balance of credit card a to the new card.
b.
pay off credit card a using the savings. transfer the balance of credit card b to the new card.
c.
pay off $500 from both credit card a and credit card b. transfer the remaining balances from both cards to the new card.
d.
pay off all of credit card a, and $206 of credit card b. transfer the remaining balance of credit card b to the new card.
Answers: 2
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