QUESTION 1

Part A: You owe $30,000 on your credit card. The credit card charges interest monthly and has an APR of 18.0%. Suppose the minimum monthly payment is $620 per month, how long will it take to pay off the credit card (round to nearest month)?

a. 50 months

b. 69 months

c. 72 months

d. 77 months

e. 87 months

Part B: You owe $30,000 on your credit card. The credit card charges interest monthly and has an APR of 18.0%. with the 620 monthly payment, what is the interest payment for the first payment?

a. 420

b. 430

c. 440

d. 450