4 Suppose You Have A Credit Card Which Has 22 Apr And A Minimum Payment Of 10 If Your Account Is Less Than 300 Other 1 (28.95 KiB) Viewed 26 times
4 Suppose You Have A Credit Card Which Has 22 Apr And A Minimum Payment Of 10 If Your Account Is Less Than 300 Other 2 (8.42 KiB) Viewed 26 times
4 Suppose you have a credit card which has 22% APR and a minimum payment of $10 if your account is less than $300. Otherwise the minimum payment is 1/30 of the balance due, rounded up to the nearest cent. You currently owe $1,500. (a) If you only ever make the minimum payment, it takes 151 months to pay down the account. During this time you pay a total of $3, 106. What percent of your the total payment is interest? (b) The first minimum payment is $50. If you commit to pay $50 each period rather than just the minimum payment, it takes 44 months to pay down the account. During this time you pay a total of $2, 197. i What percent of your total payment is interest?
ii By what percent does the time required to pay off the account decrease? iii By what percent does the total interest paid decrease?
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