Question

 Like many college students, Yasmin 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 DVD player for $350. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $10. Assume Yasmin makes her payment when she sees her statement at the end of each month. If Yasmin 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 DVD player? Assume

 that the credit card company compounds interest at the end of each month.

  32.6 months

  35.8 months

  50.0 months

  37.8 months

 46.3 months

 Yasmin now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates). She decides to pay twice the minimum monthly payment ($20 per month), Instead.

 How much quicker will she pay or the DVD player?

  23.1 months

 26.4 months

 29.5 months

  10.3 months

  13.9 months

 1f, instead, Yasmin wants to have the DVD player paid for by the end of the year, what minimum monthly payment

 must she make?

  $23.92

  $29.50

  $36.10

  $35.54

  $31.59

Answer 1