Question

In general, reducing the number of periods (n) used to pay off credit card debt but keeping the present value (PV) and interest rate (i) the same will __________.

a.
reduce the monthly payment (P)
b.
increase the monthly payment (P)
c.
eliminate the monthly payment (P)
d.
have no effect on the monthly payment (P)

Answer 1

The answer is B

Step-by-step explanation:

Answer 2

In general, reducing the number of periods (n) used to pay off credit card debt but keeping the present value (PV) and interest rate (i) the same will increase the monthly payment (P).

Debt results once a shopper of a MasterCard company purchases an item or service through the card system. The late payment penalty itself will increase the number of debt the buyer has.