Paying off Credit Cards
Simon Recenlty received a credit cash with an 18% nominal interest rate. With the card, he purchased and Apple Iphone 5 for $372.71. The minimum Payment on the card is only $10 per month.
A) If Simon makes the minimum montlhy payment and makes no other charges. How many months will it be before he pays off the card? Round to the nearest month.
B) If Simon makes montlhy payments of $35, How many months will it be before he pays off the debt?
C) How much more in total payments will Simon make under the $10 a month plan than under the $35 month plan? Make sure you use three decimal places for N.