Question

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 please select the best answer from the choices provided. a b c d

Answer 1

The amount Marcia saved in interest by consolidating the two balances will be $105

What will be the amount Marcia will save in interest by consolidating the two balances?

It is given that

For Card A = 1,879.58 ; APR 14%; monthly = 43.73

For Card B = 861.00 ; APR 10% ; monthly = 18.29

Now $\rm 5\ Years \times\ 12\ months =60\ months$

For Card $A=43.73\times60=2623.80$

For Card $B=18.29\times60=1097.40$

Now the $\rm Total=2623.80+1097.40=3721.20$

Since Lowest APR is 10%. monthly rate: 0.83%

So the Total Card balance  $1879.58+861=2740.58$

$A=\dfrac{P\times r(1+r)^n}{(1+r)^n} -1$

$A=\dfrac{2740.58\times(0.0083(1.0083)^{60}}{1.0083^{60}}-1$

$A=2740.58\times0.022$

So monthly payment.

$A=60.29$  

$60.29\times60=3617.40$

For Separate cards: 3,721.20

For Consolidated:     3,617.40

The Difference: 103.80

Thus the amount Marcia saved in interest by consolidating the two balances will be $105

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Answer 2

Answer:

its D

Step-by-step explanation: