Question

The balance on a certain credit card will be paid off in 53 months by making on-time minimum monthly payments or in 21 months by paying an additional $40.00 per month. What percent of time will be saved by paying the extra $40.00 per month?

Answer 1

To calculate the percentage of time saved by paying the extra $40.00 per month to pay off the credit card balance, divide the time saved by the original time taken and multiply by 100.

Step-by-step explanation:

To calculate the percent of time saved by paying the extra $40.00 per month to pay off the credit card balance, we first need to find the total time taken to pay off the balance in each scenario.

Scenario 1: On-time minimum monthly payments - 53 months

Scenario 2: Paying an additional $40.00 per month - 21 months

Next, we calculate the difference in time between the two scenarios: 53 months - 21 months = 32 months

To find the percent of time saved, we divide the time saved by the original time taken and multiply by 100:

(32 months / 53 months) * 100 = 60.4%

By paying the extra $40.00 per month, approximately 60.4% of the time is saved compared to making only the minimum monthly payments.