Question heather has a 6500 balance on a credit card with a, Ask an Expert

Finance

Question: Heather has a $6,500 balance on a credit card with a 14.5% APR. She wants to pay-off the balance, before buying her house, but she is only able to make a $250 payment each month. She has two options to pay-off the credit card.

Option 1: Pay the balance using the current credit card terms.

Option 2: Transfer the entire balance to a new credit card with the following terms:

* 3% charge on any balance you transfer

* 0% APR for the first 6 months

* 16.7% APR after the 6 month introductory period

For each option, calculate how long it will take to pay off the balance and the total money spent to do so. Assume no other purchases were made. Which is the better way to pay-off the balance? What advice would you offer Heather about paying-off this debt?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92818643

Have any Question?Write your Review or question?

Related Questions in Basic Finance

The pretzel factory has net sales of 841300 and cost of

the pretzel factory has net sales of 841,300 and . cost of 698500. the depreciation expense is 28400 and the interest paid is 8400. The firms marginal tax rate is 35 percent what is the firms operating cash flow?

Question - assume a company has 10 million shares of stock

Question - Assume a company has 10 million shares of stock outstanding and that its Income Statement for Year 12 is as follows: Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 300,000 Cost of P ...

A 3d printer company decided on new product features and

A 3D printer company decided on new product features and design after extensive prototyping for its new printer. The company's marketing team created some buzz by posting a YouTube video displaying a variety of projects ...

Project investment analysis assignment - city highrise

PROJECT INVESTMENT ANALYSIS ASSIGNMENT - City Highrise Complex Development Option The aim of this project is to introduce participants to concepts of Financial Feasibility Modelling and the use of spreadsheets for feasib ...

Is there a particular capital structure that maximizes the

Is there a particular capital structure that maximizes the value of the firm? Explain.

Are us executives paid too much particularly compared to

Are U.S. Executives paid too much particularly compared to the average worker in their organization?

Case study - financial report analysisquestions -1 in

CASE STUDY - FINANCIAL REPORT ANALYSIS QUESTIONS - 1. In reading this case study, what is your first impression of the state of affairs with Pifco-Zen Chen Company Limited? 2. Is the company on the right track after you ...

Suppose that a mutual fund that tracks the sampp has mean

Suppose that a mutual fund that tracks the S&P has mean E(Rm) = 16% and standard deviation σm = 10%, and suppose that the T-bill rate Rf = 8%. Answer the following questions: (a) What is the expected return and standard ...

Question - gamma energy is an oil producing company that

Question - Gamma Energy is an oil producing company that owns an oil field from which it can deliver 10 mln barrels of oil per year for the next four years. The current oil price is USD 75 per barrel. Extraction costs ar ...

The shareholders ofnbspa company need to elect six

The shareholders of a company need to elect six directors and there are 150,000 shares outstanding. 1). What is the minimum number of shares they need to own to make sure that they can elect at least one director if the ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert