Question: Use the following information to answer the question below: For this activity, we will use the credit card calculator from bankrate.com (https://www.bankrate.com/calculators/credit-cards/credit-card-minimum-payment.aspx); We also make

Use the following information to answer the question below:

For this activity, we will use the credit card calculator from bankrate.com (https://www.bankrate.com/calculators/credit-cards/credit-card-minimum-payment.aspx); We also make these assumptions: Your credit cards interest rate (APR) is 19.9%. The minimum payment due each month is 3% of your starting balance.

Question:

a. Suppose you have a credit card bill of $1,275 for the month of October. If you pay the full balance before your bill is due, how much will you pay in interest?

b. Now... if you only pay the 3% minimum ($38.25/month) - how long will it take you to pay off the debt?

c. According to the calculator, how much will you pay TOTAL?

d. How much of that total is INTEREST?

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