Paying the miminum payment on a credit card bersus paying extra to get credit ca

Question

Paying the miminum payment on a credit card bersus paying extra to get credit card paid off early. Choose a credit care balance between $6,000 to do your cake ulations using an 10%.APR.You may use a credit card ulator of your choice there are many options online. Parfcrm the following take to pay off the credit card balance paying only the minimum payment. Choose and amount of time between two and 10 years, and calculate the monthly payment required to pay off credit card balance in that amount of time. Choose any amount over the minimum monthly payment, and determine how long it would take to pay off the credit balance.

Explanation / Answer

Credit card balance = 10,000
APR = 18%
a. Minimum repayments = $203,
It will take 43 years and 11 months to make repayments.

b. Period = 2
Higher repayments = $492
Use this calculator to calculate above figures.
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/credit-card-calculator

c.
Balance = $10,000
APR = 18%
Monthly payment = $300
It will take 3 years 11 months to payoff credit balance.
Use this below link to calculate
http://www.calculatorweb.com/calculators/creditcardcalc.shtml

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.