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As of today, Joe owns debt on two credit cards: Citi $1,900 and Amex $3,260. He is not charging additional purchases because he wants to
As of today, Joe owns debt on two credit cards: Citi $1,900 and Amex $3,260. He is not charging additional purchases because he wants to get this debt all paid off. Both cards have an APR of 14.4%. First monthly payback will begin one month from now. Part 1 Attempt 1/3 for 10 pts. How long (# of months, keep the decimal) does it take to pay off Citi? if he only makes monthly minimum payments of $29? 0+ decimals Submit Part 2 | Attempt 1/3 for 10 pts. How long does it take to pay off Amex? if he only makes monthly minimum payments of $39? Let's approach this question differently by answering how much upfront Amex debt can be paid off if Joe keeps paying $39 month after month forever? (compare to the debt balance of $3,260, what do you see) 0+ decimals Submit Part 3 - Attempt 1/3 for 10 pts. How long does it take to pay off Amex? if he only makes monthly minimum payments of $39? Let's approach this question differently again by amortization. If $39/month will eventually pay off the debt someday, then each $39 should partially pay the monthly interest and partially pay down the debt balance. What's the first monthly interest? (compare to the first monthly payment of $39, what do you see) 1+ decimals Submit
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