Question
Please do in excel Horace has a credit card with a balance of $12,000. The annual interest rate is 18%. The terms of the credit
Please do in excel
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.
a. How many years will it take to pay off the balance, assuming Horace only pays the minimum required payment?
b. How long will it take to pay off the balance if Horace pays an extra $50.00 per month?
c. 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