Question: Making only the minimum payment on a credit card can be costly because you will pay much more in interest over the life of the

Making only the minimum payment on a credit card can be costly because you will pay much more in interest over the life of the loan.
For this exercise, assume the following facts:
Credit card balance is $1,000.
Credit card APR is 20%.
Minimum payment is 2% of the outstanding balance or $20(whichever is greater).

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