Paul sees that his monthly credit card statement has a balance of $2,700 for purchases that he made in the month prior. This balance has an APR of 16.21%, compounded daily. The minimum monthly payment on the statement is $30. Answer the following parts below.

Part #1: If Paul decides to only pay the minimum payment of $30, how many months would it take for the balance to be paid off? Note that this is assuming that no other credit card purchases are made.

Part #2: If Paul continues to make the minimum monthly payments until his balance is paid off completely, how much interest in total would Paul pay?

Note: Please show your work and DO NOT give me Excel inputs.

Answer rating: 100% (QA)

Part 1 To calculate the number of months it takes to pay off the balance by only m... View the full answer