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She has a credit card with a balance of $16,000. The annual interest rate is 15%. The terms of the credit state that a minimum
She has a credit card with a balance of $16,000. The annual interest rate is 15%. The terms of the credit state that a minimum payment of 4% of the outstanding balance must be paid each month, but no less than $40.00 must be paid each month.
She 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 She only pays the minimum required payment?
- How long will it take to pay off the balance if She pays an extra $40.00 per month?
- How much in addition to the required minimum payments must She pay each month if she wishes to pay off the balance in 4 years?
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