How many months will it be before he pays off debt

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Reference no: EM131985310

Simon recently received a credit card with an 13% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $340. The minimum payment on the card is only $20 per month.

a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest month.

b. If Simon makes monthly payments of $60, how many months will it be before he pays off the debt? Do not round intermediate calculations. Round your answer to the nearest month.

c. How much more in total payments will Simon make under the $20-a-month plan than under the $60-a-month plan. Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM131985310

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