Debt consolidation services profit making business

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Reference no: EM131203316

A service may pay off all the loans – say $25,000 worth so that the consumer now only has one debt to pay – the one to the consolidation service. The difference is that they may now only pay 12% APR (1% a month) so that instead of paying $437.50 a month (1.75% of $25,000) to simply pay the interest, they will be able to pay off the loan.

a) How many months will it take to pay off the $25,000 loan at $437.50 per month at 12% APR compounded monthly?

b) When the loan is paid off, how much interest has gone to the Debt Consolidation Service? f) Are Debt Consolidation Services a profit making business or a charitable organization?

c) Are Debt Consolidation Services a profit making business or a charitable organization?

Reference no: EM131203316

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