The closest among the choices is Choice C. $105. Differences in amount may vary in the rounding off of the decimal numbers.
The complete question is given below as:-
Marcia has two credit cards and would like to consolidate the two balances into one balance on the card with the lower interest rate. The table below shows the information about the two credit cards Marcia currently uses.
Card A
Card B
Amount
$1,879.58
$861.00
APR
14%
10%
Monthly Payment
$43.73
$18.29
After 5 years, how much will Marcia have saved in interest by consolidating the two balances?
a.
$1,526.40
b.
$2,422.80
c.
$105.00
d.
$227.40
The amount received by an employee by giving the service or work to any frim will be termed as the income.
Given:
Card A - 1,879.58 ; APR 14%; monthly -43.73
Card B - 861.00 ; APR 10% ; monthly -18.29
5 years x 12 months/yr = 60 months.
Card A = 43.73 x 60 = 2,623.80
Card B = 18.29 x 60 = 1,097.40
Total : 2,623.80 + 1,097.40 = 3,721.20
Lowest APR is 10%. monthly rate: 0.83%
Total Card balance: 1,879.58 + 861 = 2,740.58
A = P * (r(1+r)^n) / [(1+r)^n -1]
A = 2,740.58 * [0.0083 (1.0083)^60] / [(1.0083)^60 - 1]
A = 2,740.58 * 0.014/0.64
A = 2,740.58 * 0.022
A = 60.29 monthly payment.
60.29 x 60 = 3,617.40
Separate cards: 3,721.20
Consolidated: 3,617.40
Difference: 103.80
Therefore closest among the choices is Choice C. $105. Differences in amount may vary in the rounding off of the decimal numbers.
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