Question

PLEASE HELP!!!!

You have two credit cards.

Card Name (APR %) Existing Balance Credit Limit

Murk (5.6%) $675.49 $1,500.00

Mini (9.85%) $902.43 $1,000.00



What is your debt ratio? If you budget $375 to payoff your credit card debt and you payoff the highest interest card first while maintaining the interest accrued on the other card, how many months does it take you to pay it off and how much is the payment each time excluding the last payment?

Answer 1

Just in case you did not see it on the other question.
5 months

Month 1: $375 Mini $3.15 Murk
Month 2: $375 Mini $3.15 Murk
Month 3: $165.58 Mini $209.42 Murk
Month 4: $375 Murk
Month 5: $87.36 Murk

Answer 2

The Last payment would be 5th month.

Explanation:

Mini

Month Opening Interest 5.6% Amount Payment Closing

Balance including interest Balance

1 902.43 7.40744625 909.8374 375 534.8374

2 534.8374 4.390124038 539.2276 375 164.2276

3 164.2276 1.348034639 165.5756 375 -209.424

Murk

Month Opening Interest 5.6% Amount Payment Closing

Balance including interest Balance

1 675.49 3.152286667 678.6423 0 678.6423

2 678.6423 3.166997338 681.8093 0 681.8093

3 681.8093 3.181776659 684.9911 209.424 475.5671

4 475.5671 2.21931295 477.7864 375 102.7864

5 102.7864 0.479669744 103.266 375 -271.734