Marcia has two credit cards and would like to consolidate the two balances into one balance on the card with the lower interest rate. the table below shows the information about the two credit cards marcia currently uses. card a card b amount $1,389.47 $1,065.32 apr 16% 12% monthly payment $39.38 $28.05 after 4 years, approximately how much will marcia have saved in interest by consolidating the two balances? a. $1,890.24 b. $133.92 c. $543.84 d. $1,346.40

The correct answer is option (c).

Marcia has saved $543.84 by consolidating her both the credit cards.

Further Explanation:

Credit card:

Generally, Credit card is issued by financial institutes such as banks. Credit card refers to a plastic card which allows cardholders to borrow the funds from the respective bank and spend the funds as per their requirements.

A credit card can be used for the purchase of goods and services. Generally, a credit card has a specific limit. It is known as a line of credit (LOC). The cardholder can withdraw or use the funds up to the LOC. The cardholder has to pay the amount which is borrowed along with interest on the borrowed funds after a specific time, which is defined and stated at the time of issuing the credit card.

48 months payment of Credit Card A = $39.38×48

                                                                = $1890.24

48 months payment of Credit Card B = $28.05×48

         =$1346.4

Amount saved in four years is ($1890.24- $1346.4) = $543.84.

Learn more:

1.Learn more about the money owed to the credit card company

link

2.Learn more about the common credit card fee

link

3.      Learn more about making the on-time minimum payment of credit card

link

Answer details:

Grade: High School

Subject: Finance

Chapter: Interest Rates

Keywords: Credit cards, payment, monthly payment of cards, card balance, interest on credit card, Marcia has two credit cards, would like to consolidate the cards, lower interest rates.