Minimum monthly payment, Suppose you owe $1400 on your

Minimum monthly payment

Assignment Help Business Economics

Reference no: EM13737837

Suppose you owe $1400 on your credit card. The APR is 12%, compounded monthly. The credit card company says your minimum monthly payment is $20.84.

a. If you make this minimum payment, how long will it take for you to repay the $1400 balance?

b. If you make payments of $31.53, how long will it take you to pay of the $1400 balance?

c. Compare the interest paid in part a. vs part b.

Reference no: EM13737837

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