## Description

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*.

## Explanation & Answer

Attached.

Running head: ALGEBRA DISCUSSION

Algebra Discussion

Student’s Name

Institutional Affiliation

1

ALGEBRA DISCUSSION

2

Algebra Discussion

Lender scenario:

𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 =

𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 =

principal×rate×time

100

$1300×79.9×1

100

𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 = $1038.70

Total cost= 𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 + 𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡

= $1300+ $1038.70

= $2338.70

Credit card scenario:

𝑆𝑖𝑚𝑝𝑙𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 =

𝑆...