If you did not reset your calculator after solving the previous TVM problem, like I suggested, then you only needed to change the interest rate and to solve for the number of periods (months) again. The answer is ~44 months, as you can see here. With the interest rate significantly reduced, the number of periods (months) Cardi has to make payments is now ~44, not 64, a significant reduction. Way to go, Cardi, things are looking up! There's more good news though. Next, let's try to develop our TVM intuition some more. Without using a TVM calculator, try to answer the following question: if Cardi wanted to pay off the balance in half the time. Instead of paying $400 a month, how much would she need to pay per month, assuming all other factors being equal? This question is a bit tricky, and the answer may surprise you. Take your time to THINK before answering.

a. More than $800

b. $200, half the $400 payment

c. More than her current payment of $400, but less than $800

d. $800, double the $400 payment

e. Less than $200