Calvin Johnson has a $5,000 debt balance on his Visa card that charges 13.4 percent APR...

 

Transcribed Image Text:

Calvin Johnson has a $5,000 debt balance on his Visa card that charges 13.4 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 4 percent of his debt balance, which is $200. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $200 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 5 percent. If Calvin made monthly payments of $250 at the end of each month, how long would it take to pay off his credit card? a. If Calvin made monthly payments of $200 at the end of each month, how long would it take to pay off his credit card? b. If Calvin made monthly payments of $250 at the end of each month, how long would it take to pay off his credit card? Calvin Johnson has a $5,000 debt balance on his Visa card that charges 13.4 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 4 percent of his debt balance, which is $200. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $200 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 5 percent. If Calvin made monthly payments of $250 at the end of each month, how long would it take to pay off his credit card? a. If Calvin made monthly payments of $200 at the end of each month, how long would it take to pay off his credit card? b. If Calvin made monthly payments of $250 at the end of each month, how long would it take to pay off his credit card?

Answer rating: 100% (QA)

Answer To determine how long it will take Calvin Johnson to pay off his credit card we can use the f... View the full answer