Card A has a $35 annual fee and a simple interest of 16%, (APR is determined by appliying the Interest rate to the average monthly balance, card B has no annual fee but 18% Interest rate.
If i carry $3000 balance each month for a year, How much can I save with the better card?
Thanks everyone
2007-12-04 05:48:12 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
Card A: $3,000 * .16 = $480 + $35 = $515
Card B: $3,000 * .18 = $540
You would save $25 per year with Card A.
2007-12-04 05:51:57 · answer #1 · answered by Kathryn 6 · 1⤊ 0⤋
You will save 2% of $3000 or $60.
2007-12-04 05:52:12 · answer #2 · answered by blizebliz 5 · 0⤊ 0⤋
The higher interest rate will always cost you more if you carry a balance. If you pay your balance in full every month, the interest rate would make no difference.
2007-12-04 05:59:58 · answer #3 · answered by bdancer222 7 · 1⤊ 0⤋