First, you have to convert both interest rates from compounded daily to compounded monthly:
15.9% = 16.00% compounded monthly.
14.20%=14.28% compounded monthly.
Then you would have to use this formula to calculate the monthly payment or the number of months required to pay off the loan: PMT=PV. R.{[1 + R]^N/ [1 + R]^N - 1}
Unfortunately, there is no direct solution for N, or number of months, at least not an easy one!. See the note below. However, if you have a financial calculator and enter all the variables in, you should get N =15.19 months on the first card @ 15.9%.
[15.19 x $350] - $4,785 =$531.50 Total interest on the 15.9% card.
And N =15.01 months on the second card @ 14.2%
[15.01 x $350] - $4,785 =$468.5 Total interest on the 14.2% card.
You can subtract the bottom from the top to get the difference.
@2% on $4,785 =$95.70 Check he will get in the mail on the 15.9% card.
And $100 he will get on opening a new account on the second card @ 14.2%
$531.50 - $95.70 =$435.80 Net cost on the first card @ 15.9%
$468.50 - $100 =$368.50 Net cost on the second card @ 14.2%.
Now, you can see the net difference by subtracting one from the other.
Note: There is a relatively involved formula for finding N, or the number of months, and it looks like this: N =Log[(-FV*R+PMT) /(R*PV+PMT) ] / Log[R+1]