Question

Say you owe $10,000 on your credit card with a 1% monthly interest rate. Further, say you make $90 monthly payments. Assuming you make no further purchases, you will pay off your credit card balance in:

33.12 months

33.67 months

33.99 months

you will never pay off your balance. It will grow every month.

Answer 1

Monthly Interest=10000*1%=100
As monthly payment of 90 is less than monthly interest, balance will keep on increasing and you will never pay off your balance. It will grow every month