Determine how much it will cost to pay off a credit card balance of $5,000 given the assumptions in Steps 1 and 2

Step 1 - Determine how much interest will be paid over the life of the debt.To determine how much interest will be paid, use the following debt calculator web site: http://www.bankrate.com/.Use managing debt tab, credit card calculators section, credit card minimum payment calculator

Assume the following:

Credit card balance = $5,000

Interest rate on credit card = 18.9%

Minimum payment calculated - 2.5% of outstanding balance

Select fixed payment schedule.Enter the above variables into the web site calculator and press the Calculate button.

If only the minimum was paid (calculated as 2.5% of the outstanding balance), how many months would it take to pay off the credit card debt? __________ How much would be paid in interest? _________