Question

Three friends each have a balance of $5,000 on their credit cards with a 25% APR. They've decided that they will not make any other purchases on their cards until they pay off the debt and make varying amounts of monthly payments:
Sharon can only make the credit card minimum payment, $150 per month
Cecilia can set aside $400 per month to pay back her debt
Alexander can pay $800 per month for his credit card
After 5 months, how much will each person have paid in interest so far and how large will their remaining balance be? Use the formulas below to calculate their interest and balance for each month.
Hint: Credit card interest is typically compounded daily so n=365. Time here is in years, so make sure you use a fraction for your t value.

Answer 1

Answer:

Sharon=700per month Cecelia=2000per month Alexander=4000 per month