Question

Credit Card Debt DUE MARCH 1ST MaX 4 peaple) Recently you got in the mail an AMAZING! offer for a credit card, no credic check required! The card offered a low low interest rate of only 2% per month with a maximum of $2,000 with a low minimum payment of 1% the total amount owed. A month after filling out the form you recieved your shiney new credit card in the mail. You took your card out for a spin at the mall and unforunately ended up maxing your card. Part 1 After maxing your card you noticed that your minimum fee wasn't all that large! Thus you decided you would jut rip up the card and pay the minimum each month. After all, gathering up the full $2000 to pay it off would be difficult. How long will it take for your debt to double to $4,000? How long will t take for your debt to be large enough to buy a new car (so online to find the price for a new car that interests you)? How long will it tkae for your debt to reach a million dollars? Part 2 Suppose you disregard the minimum fee of 1% as it is fairly small. A year later you notice that your debt is lincreasing! and start to pay the minimum fee each month. How long will it take for your debt to double to $4,000? How long will it take for your debt to be large enough to buy a new car (go online to find the price for a new car that interests you)? How long will it tkae for your debt to reach a million dollars?

Answer 1

Part 1 a) 72.15 months. i. e 6 years approx.

b) We assumed $16000 car = 214 month approx.

c) 638 months approx.
o,0g ooo 0 00000 - 2000,902 1の (OD 500=-(1009 l0000 looo0 na 638.05 639.05 ー

brneunt paidーマー41 lob dD amont AS nauased 102 16T 100

do,止.turns ,.a、GP 10819 wtn mo nth. Tn-4000 ん-|10 Huse Tal 0:30! -(n-))(0.00 y2.3 1s 72 15

lthun debt一丛一16,000,-,-month : 2 8 10093 0000/ 0-103 e(n-l ) (0:0042