Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Horace has a credit card with a balance of $12,000. The annual interest rate is 18%. The terms of the credit state that a minimum
- Horace has a credit card with a balance of $12,000. The annual interest rate is 18%. The terms of the credit state that a minimum payment of 3% of the outstanding balance must be paid each month, but no less than $35.00 must be paid each month.
Horace plans to stop using the credit card and pay off the balance according to the terms of the credit.
- How many years will it take to pay off the balance, assuming Horace only pays the minimum required payment?
- How long will it take to pay off the balance if Horace pays an extra $50.00 per month?
- How much in addition to the required minimum payments must Horace pay each month if he wishes to pay off the balance in 5 years?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started