Question:
I NEED HELP 10PTS!! 10PTS!!!!!?
Dream
2012-09-19 16:11:44 UTC
Kayla wants to get a charge card for one of two department stores in her town. both stores charge the same interest rate for unpaid balances, but the method for calculating the principle that is used is different.

Store A calculates its principal using the average daily balance method; that is, the principal is the average daily balance of all unpaid charges.

Store B uses the past due balance method; that is, the principle is the amount left unpaid from the last month.

Kayla expects that she will make payments every month, but that she will have an unpaid balance in some months.

I need help with these three questions.

a. Which Method will result in a greater principal in some months? Explain.

b. To which store should Kayla apply for a charge card? Why?

c. Assume that the annual finance charge at store B is 2% less that at store A but that Kayla likes the merchandise better at Store A. For which store should she get a charge card and Why?
Three answers:
anonh
2012-09-19 16:12:47 UTC
Yeah
zastawny
2016-12-18 10:27:46 UTC
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Sponge Bob
2012-09-19 16:22:53 UTC
I can't help you because I am a victim of a bad school with bad teachers that failed to educate me


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