From A student: dulani has a new credit card. it says: you can get cash advances wherever you are. whenever you want. also if you pay off your balance in full each month for a small transaction fee, the cash is interest free. (see important information on reverse side. On reverese side it says:
cash advance transaction fee:
$500 or less 2.5%; $500.01 to $1000.00-2%; $1000.01 or more -1.5%; $2.00 minumum.
Annual percentage rater for cash advances 19.8%. dulani wants to know what a cash advance will really cost. Analyze the cash advance terms given here. how much would he pay for a $20 cash advance? What about a $450 cash advance? What annual interest rate are these charges equivalent to? choose other amounts. determine cost and annual ratees for these as well. make recommendations to dulani. Answered by Penny Nom.
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