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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.
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:
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