Answer to Question #177341 in Economics for Rhiannon Sharp

Question

Zoe Robinson has several credit cards, on which she is carrying a total current balance of $10,500. Her current cards charge her 12% per year. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 3 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 9 months. Calculate the fee that Zoe would pay to transfer the balance.

Answer 1

Transfer payment = $10500 x 0.03 = $315