1. you have two credit cards. credit card 1 has a balance of $7,512.33 with an apr of 21.25% and limit of $10,000. credit card 2 has a balance of $623.34 with an apr of 24.15% and limit of $7,500. in your own words, which credit card should you focus on paying off first and why? be sure to include the credit card and the reason for paying this one off first. 2. you are looking for an account to invest your $19,000 in. you want to know how many years it will take to double if the account you are putting it into gets 2% apr. using the rule of 70, how many years should you be expecting to leave it sit? 3. suppose we deposit $7,300 into a savings account which compounds daily with 5% apy and we want to know how much the account will be worth after two days. using the simple interest formula (i = prt), show your work for arriving at the account balance after two days.

You have three, each very interesting, questions.1. the intuitive answer of giving priority to the card with the higher apr (credit card 2, with apr=24.15%) is correct.   the credit limit does not affect the choice.   for the same payment on the same day, the reduction in the balance will be more substantial on credit card 2 that that of credit card 1.since every day counts in the  outstanding balance, pay off as soon as possible, count the days.2. for any investment p, at 2% apr,a. if compounded monthly, time to double, t years, is given byp(1+0.02/12)^(12*t) = 2ptake log on both sides after cancelling p12t(log(1+0.02/12) = log(2)t=(log(2)/12)/log(1+0.02/12)=34.686 yearsb. if compounded yearly, proceeding as in part a,p(1.02)^t=2pt=log(2)/log(1.02)=35.003 yearsc. using the rule of 70, time it takes to doublet=70/2=35.000 years.3. $7300 investment at 5% apy compounded daily.   need value of investment after two days.5% apy means the actual yield after a year is 5%, which means that the daily interest, i, is given byp(1+i)^365 = 1.05ptake log on both sides and solving for ilog(1+i)=log(1.05)/365i=e^(log(1.05)/365)-1     [ using natural log, will work with any log ]=0.000133680617113(check:   1.000133680617113^365=1.05, ok)value of investment after one day=7300*1.000133680617113=$7300.9759value of investment after two days   (using previous day value as p because interest is compounded daily)=$7300.9759*1.000133680617113=7301.95   (to the nearest cent)