For this discussion, suppose you purchase a television for $1300.00 with a First Premier credit card that has 79.9% APR. Assuming simple interest and no monthly payments, how much interest will you owe at the end of 12 months? What will the total cost of the television be?
Suppose you open a savings account with $1300.00 at a 0.5% annual interest rate. Assume simple interest. How much interest will your account accrue at the end of 12 months? What will be the balance of your account?
In one scenario, you are the lender (to the bank) in the other scenario the credit card company is the lender. Compare the two different scenarios. Is this a fair situation and why? Next respond to your peers’ post by explaining whether you agree or disagree with their reasoning and why.
In your initial post, make sure you are answering all questions in the prompt. Including showing all work and explaining your steps in words. Your initial post should be at least 200 words in length.