### Monthly for purchases and balance transfers

Assignment Help Basic Computer Science
##### Reference no: EM131381788

See the credit card offer from State Farm. Read the conditions carefully. Assume the stated APR's are nominal rates, where compounding is Monthly for purchases and balance transfers, and Daily for cash advances (this is typical). You may assume all months are equal length.

A. Linda signs up for the card and immediately transfers a balance of \$1000 from her other card. For the next 12 months, she makes no other use of the card except to pay the minimum monthly payment of \$25.00 per month. What is her remaining balance at the end of 12 months? Hint: What is her actual interest rate? Try a spreadsheet to make sure you see what is going on.

B. Repeat part (A), but with an initial amount of \$2500.00. Assume the monthly minimum payment is still \$25.00.

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