Like many college students, Kristlne applied for a... Bookmark Like many college students, Kristlne applied for and got a credit card that has an annual percentage rate (APR) of 15%.
The first thing she did was buy a new HD Television for $300. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $10. Assume Kristine makes her payment when she sees her statement at the end of each month.
If Kristine doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the HD Television? Assume that the credit card company compounds Interest at the end of each month.
37.8 months
20.8 months
46.3 months
35.8 months
40.2 months
Kristine now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this HD Television until she graduates). She decides to pay twice the minimum monthly payment ($20 per month), Instead. How much quicker will she pay off the HD Television?
23.1 months
21.1 months
16.8 months
10.3 months
26.4 months
If, Instead, Kristine wants to have the HD Television paid for by the end of the year, what minimum monthly payment must she make?
$26.65
$23.21
$36.10
$35.54
$27.08