Question

Assume you have a credit card balance of $1,000. Your inter est rate on the credit card is 18 percent, and your minimum monthly payments are $ 50. At this rate, how long will it take to your credit card? What would your payment need to be to pay it off in three years? How long would it take to pay off your debt if your interest rate is 14 percent and your minimum monthly payments are $50 ? Use a financial calculator or an on line calculator to do your computations .

Answer 1

For 18% it will take 2 years to pay
For 3 years payment will be $36.50
For 14% it will take 1.9 years or 23 months