Your FICO score makes a big difference in how lenders determine what interest rate to charge you. Consider the situation faced by Edward and Jorge. Edward has a fairly poor FICO score of 660 and, as a result, pays 18.0% APR on the unpaid balance of his credit card. Jorge has a FICO score of 740 and pays only 7.0% APR on the unpaid balance of his credit card. If both persons carry an average balance of $3,500 on their credit cards for three years, how much more money will Edward repay compared with what Jorge owes (moral: you want a high FICO score)? Assume monthly compounding of interest.

Assume that Edward and Jorge makes constant monthly payment for the next 36 month to pay it off.What will be the monthly payment amount for each?Also, in simple calculation (without regard to compounding,) how much will Edward will pay more than Jorge?For example, if A pays $500/mo for a year and B pays $400/mo for a year, A would be paying $1200 more in simple calculation.