You are trying to decide between 2 credit cards. Credit card A has no annual feeand an annual interest rate of 22.99%. Credit card B has an annual fee of $135 and anannual interest rate of 18.99%.a) To help you decide, determine the ‘equal-cost annual carried balance’:At this annual carried amount, the card fees plusinterest are equal:$ Card _____ is the better choice if my annual carriedbalance amount is GREATER than:$ Card _____ is the better choice if my annual carriedbalance amount is LESS than: What difference does compounding make?You have a $10 000 debt. Calculate the interest and amount for each.Interestrate 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 yearsReflection: 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 fromthe $50 USD bill?
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?
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