Davis owns a moving business and one of his trucks needs a new transmission along with some other repairs that will cost a total of \$4785. He can use…

Davis owns a moving business and one of his trucks needs a new transmission along with some

other repairs that will cost a total of \$4785. He can use his credit card with an annual rate of 15.9%

compounded daily that offers 2% cash back on all purchases made on the card or he can sign up

with a new card company that is offering a \$100 rebate the first time the card is used. This card has

an annual rate of 14.2% compounded daily. Which card would be less expensive and by how much

less if he can afford to pay back \$350 per month?

(use your financial application and fill in the appropriate inputs)

a. Existing Card

N  ________ I%  _________ PV  ________ PMT  __________

FV  ________ P / Y  ________ C / Y  _________

b. New Card

N  ________ I%  _________ PV  ________ PMT  __________

FV  ________ P / Y  ________ C / Y  _________

c. Least expensive card