Question

Jenny has a balance of $10,000 on her credit card with an annual interest rate of 15%. To pay off the $10,000 in three years, jenny will have to make a minimum payment of $346. 65 per month. Jack has a balance of $10,000 on his credit card with an annual interest rate of 15%. To pay off the $10,000 in five years, jack will have to make a minimum payment of $237. 90 per month. Who will pay more during the length of their loan and by how much?.

Answer 1

Answer: Jack will pay more during the length of their loan and will pay $1794.60 extra.

Step-by-step explanation:

Given, Jenny Balance = $10000

interest rate = 15%

EMI = $346.65

and for Jack Balance = $10000

interest rate = 15%

EMI = $237.90

Difference = = $1794.60

This means Jack will pay $1794.60 extra.