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Jill has a balance of $5,000 on her credit card with an annual interest rate of 15%. To pay off the $5,000 in three years, Jill will have to make a minimum payment of $173.33 per month. To pay off the $5,000 in five years, Jill will have to make a minimum payment of $118.95 per month.

How much more does Jill have to pay when the length of the loan changes from 3 years to 5 years?

A) $1,239.88
B) $1,957.68
C) $2,137.00
D) $897.12

2 Answers

4 votes

Answer:

D) $897.12

Explanation:


User Joao Gavazzi
by
5.7k points
5 votes
3 years = 36 months
173.33 * 36 = 6239.88

5 years = 60 months
118.95 * 60 = 7137.00

7137.00 - 6239.88 = 897.12
Answer is D

User Tomas Kirda
by
6.5k points