{"blocks": [{"key": "43d221bd", "text": "Scenario", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "35eb835c", "text": "A credit-card company is evaluating whether to offer a new 1%-cashback card alongside its existing no-cashback card.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "142631d4", "text": "Question", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "ddfeacb6", "text": "What are the main revenue and cost components for a credit-card issuer? Given: both cards charge the same interest rate y% on carried balances and earn x% interchange on transactions. Non-cashback users carry an average balance of $1,000. How large must the average balance on the cashback card be for the product to break even?", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "0bef62b2", "text": "Hints", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "d2708a8a", "text": "List interchange, interest income, default risk, rewards cost, servicing. Set profit_no_cashback = profit_cashback and solve for required balance.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}], "entityMap": {}}