Hak Young has accumulated some credit card debt while he was in college.  His total debt is now $23,864.00 and his credit card charges 18% interest compounded monthly.  He is getting worried about his debt and is determined to pay it off completely.  Hak Young is daunted by that monthly payment amount and is trying to figure out how he can make paying off his loan more manageable.  He went to his bank and found out he could get a personal line of credit that he could then use to pay off his credit card.  The line of credit has an interest rate of 10.75% compounded weekly.  Hak Young realizes that payment amount, even though reduced, is just not manageable based on how much he currently makes and all of the other expenses he also has to budget for.  As a result he decides paying off his debt in 10 years is simply more realistic.    What would Hak Young's monthly loan payments be with this new timeline?  What will be the total interest paid?

Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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Hak Young has accumulated some credit card debt while he was in college.  His total debt is now $23,864.00 and his credit card charges 18% interest compounded monthly.  He is getting worried about his debt and is determined to pay it off completely. 

Hak Young is daunted by that monthly payment amount and is trying to figure out how he can make paying off his loan more manageable.  He went to his bank and found out he could get a personal line of credit that he could then use to pay off his credit card.  The line of credit has an interest rate of 10.75% compounded weekly. 

Hak Young realizes that payment amount, even though reduced, is just not manageable based on how much he currently makes and all of the other expenses he also has to budget for.  As a result he decides paying off his debt in 10 years is simply more realistic. 

 

What would Hak Young's monthly loan payments be with this new timeline? 

What will be the total interest paid?

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