You Just Received an Offer in the Mail to Transfer

question 92

Multiple Choice

You just received an offer in the mail to transfer the $5,000 balance from your current credit card, which charges an annual rate of 18.7 percent, to a new credit card charging a rate of 7.9 percent. You plan to make payments of $250 a month on this debt. How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card? 

• A) 2.48 payments 
• B) 2.63 payments 
• C) 3.10 payments 
• D) 2.79 payments 
• E) 2.86 payments