IDNLearn.com is the perfect place to get detailed and accurate answers to your questions. Discover reliable and timely information on any topic from our network of knowledgeable professionals.
Sagot :
Credit cards are the card which is given by banks to the customers for withdrawing some amount beyond the account balance. The card I's is increased by $1579.3 than card H.
What is a credit card?
A credit card refers to a payment mechanism that helps both consumer and commercial business proceedings, including purchases and cash advances.
Computation of credit card's balance:
Amount of Card H after 3 years:
Given,
Principal(P) = $1,186.44
Interest Rate(r) = 14.74%
Number of time period(n) = 3 years.
Applying the above values in the formula given in the question:
[tex]\text{A} = \text{P}(1+ \dfrac{r}{n} )^n^t\\\\\\\text{A} =\$1,186.44(1+ \dfrac{14.74\%}{3} )^3\\\\\\\text{A}= \$1792.2[/tex]
Amount of Card I after 3 years:
Principal(P) = $1,522
Interest Rate(r) = 12.05%
A number of the time periods (n):
[tex]12\text{Months}\times3\text{Years} = 36 \text{Months}[/tex]
Again, apply the above values in the formula given in the question:
[tex]\text{A} = \text{P}(1+ \dfrac{r}{n} )^n^t\\\\\\\text{A} =\$1,522.16(1+ \dfrac{12.05\%}{12} )^3^6\\\\\\\text{A}= \$3,371.58[/tex]
Now we take the difference between both the credit cards, we have:
[tex]\text{Amount of Credit Card I}-\text{Amount of Credit Card H}\\\\=\43,371.58-\$1,792.2\\\\=\$1,579.38[/tex]
Therefore, card H's balance is decreased by $1579.3 than a card I.
Learn more about credit cards, refer to:
https://brainly.com/question/14716152
Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.