Question
Tim's got a credit card and his credit card debt 13800 and he thinking to increase home mortgage loan to pay it off. Home mortgage
Tim's got a credit card and his credit card debt 13800 and he thinking to increase home mortgage loan to pay it off. Home mortgage interest rates 4.5% and credit card interest rates 13.4%. Both loan types are computed on monthly stops. He is intending to increase his home mortgage payments so as to amortise the credit card debt over five years.
a) How much would his monthly repayments to the credit card company be if he intended to pay out the debt over five years?
b) By how much will his mortgage payments increase if he adopts this plan to deal with his credit card debt?
c) what is the saving by transferring his credit card debt to his mortgage?
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