2. Suppose your credit card balance is $1,125. The minimum payment amount is $22, and the annual percentage is 18%. a. If you make a constant monthly payment of $22, how long will it take you to pay off the credit card balance? b. How much interest will you pay if you elect to make the minimum payment?
2. Suppose your credit card balance is $1,125. The minimum payment amount is $22, and the annual percentage is 18%. a. If you make a constant monthly payment of $22, how long will it take you to pay off the credit card balance? b. How much interest will you pay if you elect to make the minimum payment?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 4QTD
Related questions
Question
am.101.
![2. Suppose your credit card balance is $1,125. The minimum payment amount is $22, and
the annual percentage is 18%.
a. If you make a constant monthly payment of $22, how long will it take you to pay off the
credit card balance?
b. How much interest will you pay if you elect to make the minimum payment?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc91797b-b06c-4db2-a39c-c70325c8f6cb%2Fb3b2c9ed-3567-4327-91eb-ab46ccbebbe6%2F53dpay_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Suppose your credit card balance is $1,125. The minimum payment amount is $22, and
the annual percentage is 18%.
a. If you make a constant monthly payment of $22, how long will it take you to pay off the
credit card balance?
b. How much interest will you pay if you elect to make the minimum payment?
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