- How much credit should be granted to each group? You might want to think in this direction: how much monthly payment can each group afford if they use the card and not paying the balance in full. You can answer the question using the future value and present value concepts here.
- What interest rate should the credit card company charge each of the group? Why?
- Which credit card offers a better rate of interest? Why? You might want to examine the
effective rate of interest for the credit card of each group.
Note: This project has no clear-cut answer – answer will vary. The goal is to apply the concepts that you have learned in the Mathematics of Finance chapter and other chapters where appropriate. Grading criteria:
- How well you apply the concepts learned in the course and justify the usage of each type of the credit card
- Demonstrated critical thinking skills: