Tiered Rewards (Part 2): You are looking to apply for a new…

Tiered Rewаrds (Pаrt 2): Yоu аre lооking to apply for a new credit card.  In researching some options out there, you find a card that is advertising a “tiered reward” system.  Curious, you look up the details. What you find is that the rewards are structured this way: If total spent is over— but less than— Card Rewards: $50 $500 1.5% of total spending over $50 $500 $1,000 $6.75 plus 2.75% of total spending over $500 $1,000 $10,000 $20.50 plus 4.25% of the amount over $1,000 $10,000 no limit $403 plus 5.5% of the amount over $10,000   You will want to use your answers to Tiered Rewards (Part 1) (Question 8 above) to help you answer this question. The main drawback of this card is that it has a very high APR of 23.64%.  Suppose you are only able to initially pay $440 of the $850 you spent in the scenario above.  Then you are able to pay off the remaining balance on the next statement. You earned rewards for this spending, but then you also had to pay interest.  Did you end up gaining money or losing money?  How much was gained/lost? Hint: Consider how much you have to pay in interest.