Some (uninformed) people would argue that carrying a credit card balance of $8,0
ID: 2644172 • Letter: S
Question
Some (uninformed) people would argue that carrying a credit card balance of $8,000 only costs $43,200 (i.e., 30 years multiplied by $1,440 per year) in interest, which is $________________ less than your answer in 7a. This should tell you (an informed person) that the big cost of not paying off a credit card is not the interest charged directly, but the opportunity cost of not having that interest cost invested instead, or we could say that the biggest cost of carrying a credit card balance consistently over the years is the
Explanation / Answer
Uninformed People world argue Wrong because 30 years not multiplied by 43200.
Ans . Considerd for Present Value of Future Cash flow So 43200 is less then Present Value.
Interest on the Present Value of future cash flow.