Simple Interest Comparison
For this discussion, suppose you purchase a television for $1300.00 with a First Premier credit card that has 79.9% APR. Assuming simple interest and no monthly payments, how much interest will you owe at the end of 12 months? What will the total cost of the television be?
Suppose you open a savings account with $1300.00 at a 0.5% annual interest rate. Assume simple interest. How much interest will your account accrue at the end of 12 months? What will be the balance of your account?
In one scenario, you are the lender (to the bank) in the other scenario the credit card company is the lender. Compare the two different scenarios. Is this a fair situation and why? Next respond to your peers’ post by explaining whether you agree or disagree with their reasoning and why.
"You need a similar assignment done from scratch? Our qualified writers will help you with a guaranteed AI-free & plagiarism-free A+ quality paper, Confidentiality, Timely delivery & Livechat/phone Support.
Discount Code: CIPD30
Click ORDER NOW..
