Problem 6.69 – Benefits of a Balance Transfer for Faster Debt Repayment
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Determine how much faster you could pay off a credit card balance by transferring it from a current card with a higher annual interest rate to a new card with a lower interest rate, given planned monthly payments. Also, consider the impact of a balance transfer fee charged as a percentage of the transferred amount on the repayment timeline.
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