Suppose you owe $1,000 on your credit card. The annual percentage rate (APR) is 24%, compounded monthly.

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Suppose you owe $1,000 on your credit card. The annual percentage rate (APR) is 24%, compounded monthly. The credit card company says your minimum monthly payment is $22.39. a. If you make only this minimum payment, how long dl it take for you to repay the $1,000 balance (assuming no more charges are made)?

b. If you make the minimum payment plus $9.07 extra each month (for a total of $31.46), how long sill it take to repay the $1,000 balance?

c. Compare the total interest paid in Part (a) with the total interest paid in Part (b).

Related Book For answer-question

Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Posted Date: Jan 29, 2019 12:00 AM

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Suppose you owe $1,000 on your credit card. The annual percentage rate (APR) is 24%, compounded monthly.

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a As per the inputs given above we need to pay 1000 to the company with in... View the full answer

Engineering Economy

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