Explain why the principle of the original loan is decreasing slowly

What Are the Consequences of Making Minimum Payments on a Loan? Let's revisit your purchase of Bose speakers in Example 1. Recall that the speakers cost $720 and now you are going to put this purchase on your credit card. Assume that this is the only item that you are charging on the card. The annual rate is 18%, and the minimum monthly payment on the loan is finance charge owed +2% of outstanding balance. Assume that each month you are making the minimum payment on your loan. a) What is your first minimum monthly payment? b) How much principal have you paid off for your loan? "The numbers in this example are based on a real case in which a friend asked me whar the best way would be to pay off his $35.000 credit card debt