Calvin Johnson has a $4,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In​ 2009, Calvin's minimum monthly payment is 3 percent of his debt​ balance, which is $120. How many months​ (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $120 at the end of each​ month? In​ 2010, as the result of a federal​ mandate, the minimum monthly payment on credit cards rose to 4 percent. If Calvin made monthly payments of ​$160 at the end of each​ month, how long would it take to pay off his credit​ card? a.  If Calvin made monthly payments of ​$120 at the end of each​ month, how long would it take to pay off his credit​ card?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Calvin Johnson has a $4,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In​ 2009, Calvin's minimum monthly payment is 3 percent of his debt​ balance, which is $120.
How many months​ (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of
$120 at the end of each​ month? In​ 2010, as the result of a federal​ mandate, the minimum monthly payment on credit cards rose to
4 percent. If Calvin made monthly payments of
​$160 at the end of each​ month, how long would it take to pay off his credit​ card?
a.  If Calvin made monthly payments of
​$120
at the end of each​ month, how long would it take to pay off his credit​ card?
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