Question

Zoe Robinson has several credit cards, on which she is carrying a total current balance of $15,500. 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 4 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

$620

Step-by-step explanation:

The computation of the fess that have to paid for transferring the balance is shown below:

= Total current balance × given percentage fee

= $15,500 × 4%

= $620

We simply multiplied the total current balance with the given percentage fee so that the fee amount could arrive

All the other information which is given is not relevant. Hence, ignored it