How much in total financing costs

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Reference no: EM132966208

Briar is planning to apply for a new credit card and is considering the following three choices. They are also planning to buy a $800 big screen television and plans to pay for this over a two-year period by making equal monthly payments.

Credit Card

                                                 Annual Interest Rate       Annual Fee

MBNA True Line Master Card              8.99%                $39

CIBC Select VISA Card                    13.99%                 $29

American Express Essential Credit Card   12.99%                $0

Problem 1: How much in total financing costs (interest costs and annual fees) for the CIBC Select Visa Card over the 2-year period (Hint: Total Financing Costs = Total Interest Costs + Total Annual Fees)?

Option 1: $179.76

Option 2: $176.16

Option 3: $177.67

Option 4: $181.22

Option 5: $178.45

Problem 2: How much in total financing costs (interest costs and annual fees) for the MBNA True Line Master Card over the 2-year period (Hint: Total Financing Costs = Total Interest Costs + Total Annual Fees)?

Option 1: $155.06

Option 2: $156.16

Option 3: $162.75

Option 4: $154.10

Option 5: $145.12

Reference no: EM132966208

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