1. Interest Charged. You just borrowed $7,500 and are charged a simple interest rate of 8%. How much interest do you pay each year?
2. Credit Card Fees and Financing. Jarrod has narrowed his choice to two credit cards that may meet his needs. Card A has an APR of 21%. Card B has an APR of 14%, but also charges a $25 annual fee. Jarrod will not pay off his balance each month, but will carry a balance forward of about $400 each month. Which credit card should he choose?