Like many college students, Lisa applied for and got a credit card that has an a

Question

Like many college students, Lisa applied for and got a credit card that has an annual percentage rate (APR) of 15%. The first thing she did was buy a new DVD player for $350. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of S10. Assume Lisa makes her payment when she sees her statement at the end of each month. If Lisa doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the DVD player? Assume that the credit card company compounds interest at the end of each month. 31.2 months 46.3 months 32.6 months 40.2 months 35.8 months Lisa now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates). She decides to pay twice the minimum monthly payment ($20 per month), instead. How much quicker will she pay off the DVD player? 10.3 months 29.5 months 26.4 months 19.5 months 17.9 months If, instead, Lisa wants to have the DVD player paid for by the end of the year, what minimum monthly payment must she make? $23.56 $29.08 $29.50 $32.09

Explanation / Answer

a)35.8 months b)17.9 months c)29.50

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