Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $12,300 balance from your current credit card, which charges an annual rate of 20.1 percent, to a new credit card charging a rate of 10.7 percent. How much faster could you pay the loan off by making your planned monthly payments of $240 with the new card?
What if there was a 2 percent fee charged on any balances transferred?