tOStudent/PlayerTest.aspx?testld-1704251728 centerwin yes MGMT 273 Fall Tiara An
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tOStudent/PlayerTest.aspx?testld-1704251728 centerwin yes MGMT 273 Fall Tiara Anderson uiz: Chapter 5 Quiz Submd Qui his Question: 1 pt This Quiz: 13 pts possible You have credit card debt of S25000 that has an APR monthly compounding) of 18% Each month you pay the minimum monthly payment You are required to pay only the outstanding interest You have received an offer in the mail for an otherwise identical credit card with an APR of 10% After considering ar your alternat s you decide to switch cards, roll over the outstanding balance on the old card into the new card, and borrow addional on the new card without changing the minimum monthly payment you ill be required to pay? (Note Be careful not to round any steps less than six decimal places) You can borrow $on the ney, card vithout changing the minimum monthly payment you vill berequired opay (Round to he nrtExplanation / Answer
Minimum monthly payment on the previous credit card = $25,000 * 18%/12
= $375
Credit card debt on the new credit card = $375 / (10%/12)
= $45,000
Therefore, additional debt on new credit card = $45,000 - $25,000
= $20,000
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