| Debt | Interest Rate | Current Balance | Minimum Payment |
|---|---|---|---|
| MasterCard | 19.9% | $600 | $22 |
| Visa | 23.95% | $2,545 | $60 |
| Car | 4.8% | $16,800 | $465 |
| Student Loan | 6.8% | $18,400 | $220 |
| Electronics Store | 22.65% | $1,015 | $29 |
| Loan from Dad | 0% | $3,000 | $20 |
| Knee Surgery | 6.2% | $5,000 | $100 |
The above are debts you owe, the annual interest rate for those
debts and the monthly payment. If you pay a total of $1,200 each
month on all your debt, how many months will it take you to get out
of debt using a snowball method?
Snowball method involves payment to debts where smallest debt is cleared first and then second smallest and so on so that Largest debt is paid of at last while paying minimum payment to other debts.
It takes 45 months to get out of debt by snowball method where in 45th month we need to pay only $ 68 to Largest debt that was outstanding that is to Student Loan of $ 18,400
And as my working exceeds specified characters of 65,000 I am unable to specify whole of my working but still I have mentioned ranking of payment below
| Debt | Ranking of Payment | Minimum payment | Interest rate | |
| Master card | 600 | 1 | $ 22 | 19.90% |
| Visa | 2545 | 3 | $ 60 | 23.95% |
| Car | 16800 | 6 | $ 465 | 4.80% |
| Student Loan | 18400 | 7 | $ 220 | 6.80% |
| Electronics store | 1015 | 2 | $ 29 | 22.65% |
| Loan from dad | 3000 | 4 | $ 20 | 0.00% |
| Knee Surgery | 5000 | 5 | $ 100 | 6.20% |
Please Like the solution if satisfied with the answer and if any query please mention it in comments...thanks
Debt Interest Rate Current Balance Minimum Payment MasterCard 19.9% $600 $22 Visa 23.95% $2,545 $60 Car...
Debt Interest Rate Current Balance Minimum Payment MasterCard 19.9% $600 $22 Visa 23.95% $2,545 $60 Car 4.8% $16,800 $465 Student Loan 6.8% $18,400 $220 Electronics Store 22.65% $1,015 $29 Loan from Dad 0% $3,000 $20 Knee Surgery 6.2% $5,000 $100 The above are debts you owe, the annual interest rate for those debts and the monthly payment. If you make $1,200 monthly payments on all your debt, how much is the interest cost on the final $1,200 of debt you...
Debt Interest Rate Current Balance Minimum Payment MasterCard 19.9% $600 $22 Visa 23.95% $2,545 $60 Car 4.8% $16,800 $465 Student Loan 6.8% $18,400 $220 Electronics Store 22.65% $1,015 $29 Loan from Dad 0% $3,000 $20 Knee Surgery 6.2% $5,000 $100 The above are debts you owe, the annual interest rate for those debts and the monthly payment. If you only make a debt payment of $1,200 each month, how much total interest will you pay over the life of your...