Question
Assume you have a balance of $2000 on a credit card with an APR of 24%, or 2% per month. You start making monthly payments
Assume you have a balance of $2000 on a credit card with an APR of 24%, or 2% per month. You start making monthly payments of $300, but at the same time you charge an additional $100 per month to the credit card. Assume that interest for a given month is based on the balance for the previous month. Complete and extend the table to show the balance at the end of each month until the debt is paid off. How long does it take to pay off the credit card debt?
(Round to the nearest cent as needed)
Month Payment Expenses Interest New balance
0 - - --- --- $1000
1 $200 $100 $10 $910
2 $200 $100 ? ?
3 $200 $100 ? ?
4 $200 $100 ? ?
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