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Which option would select

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Question 1: Due to new rules issued by the Consumer Protection Group, credit cards now have to give you both monthly and annual payment options. You are given the option to pay your balance off with monthly payments of $800 per month (starting a month from today) or with annual payments of $12,000 per year (starting a year from today). In both cases, the payoff time is the same. Unfortunately, you have awful credit so your interest rate is 48% with monthly compounding. Which option would you select?

Reference no: EM132526910

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