1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kipiarov [429]
3 years ago
9

Franks credit card has no annual fee, 23.99% interest rate. Switch to new card 16.99% rate. $35 annual fee. How much average bal

ance would frank have to make switching cards worth it?
Mathematics
1 answer:
Luda [366]3 years ago
7 0

Answer:

<em>The minimum average balance that makes the switching worth it is $500</em>

Step-by-step explanation:

<u>Equations</u>

We know Frank's credit card has no annual fees and charges an interest rate of 23.99% of his average balance B. He wants to switch to a new card with $35 annual fees but less interest rate of 16.99%.

The total annual payment Frank actually has to pay is given only by the interest of his annual average balance. That is

P_1=23.99\%\cdot B=0.2399\cdot B

With the new card, he'll have to pay a fixed fee of $35 plus the annual interest:

P_2=35+16.99\%\cdot B=35+0.1699\cdot B

To make switching cards worth it, both payments will need to be (at least) equal:

0.2399\cdot B=35+0.1699\cdot B

Rearranging

0.2399\cdot B-0.1699\cdot B=35

0.07B=35

Solving

B=35/0.07=500

B=\$500

The minimum average balance that makes the switching worth it is $500. If his balance is more than $500, he'll save by using the new card.

You might be interested in
HELP PLEASE <br>factor completely. <br><br>25d^8−80d^4+64=
Dominik [7]

Answer:

(5d⁴ − 8)²

Step-by-step explanation:

I hope this is helpful!

8 0
2 years ago
Is the value of the 1 in 1,440,000 10 times as great as the value of the 4 in the hundred thousands place ? Explain
Burka [1]
I do not think so, because it has to be the same number.
Ex: 5,539 - in this the 5 in the thousands place is greater than the 5 in the hundreds place
7 0
3 years ago
What should be included in a financial plan to protect assets?
aalyn [17]
D. how much insurance you will carry
4 0
2 years ago
How do you convert units within a measurement system☺️
katrin2010 [14]
It would pend on whetch one because you devide some nummernummer tell me witch
7 0
3 years ago
Read 2 more answers
What is the answer to -x+y=-5
rosijanka [135]

Is think your answer is x=y+5


Step-by-step explanation:


8 0
3 years ago
Other questions:
  • 4w+5z=30 solve for w
    11·1 answer
  • What is 158÷308,984 I need the answer broken down answer
    8·1 answer
  • Solve 3 x 40 draw a model to show your answer
    5·1 answer
  • What are the vertical and horizontal asymptotes for the function f(x)=x^2+x-6/x^3-1
    6·2 answers
  • What is the best approximation of the volume of the right cone?
    8·2 answers
  • What are the x-intercept of sin(x)?
    8·1 answer
  • Which statement shows the associative property of addition?
    11·1 answer
  • The height h(n) of a bouncing ball is an exponential function of the number n of bounces.
    9·2 answers
  • Please answer it’s due tonight i’ll make brainiest answer and heart it
    9·1 answer
  • If I need 3600 pennies and I make 2 pennie’s per 5 minutes how long would it take to get 3600
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!