Question

Haddad purchases a new surround system with a store credit card if haddad pays the minimum monthly payment he will have his balance paid off in 58 months if he pays an additional $30 each month he will have his balance paid off in 24 months what percent of time will haddad save by paying the extra $30 per month?

Answer 1

Let M be the minimum monthly payment and A be the additional monthly payment of $30. Let B be the balance on the store credit card.

From the problem, we have:B = M * 58 (if only minimum payments are made)

B = (M + A) * 24 (if an additional $30 is paid each month)

Simplifying these equations, we get:M = B / 58

M + A = B / 24

Substituting the first equation into the second equation, we get: B / 58 + A = B / 24

Solving for A, we get:A = B / 24 - B / 58

A = B * (58/24 - 1/58)

Simplifying, we get:A = B * 0.08275862

To find the percent of time that Haddad will save by paying the extra $30 per month, we need to find the difference in time between the two scenarios and divide by the longer time (58 months).

The time it takes to pay off the balance with only the minimum payments is 58 months, while the time it takes to pay off the balance with the additional $30 each month is 24 months.

The difference in time is:58 - 24 = 34

So Haddad will save 34 / 58 = 0.5862, or 58.62% of the time by paying the extra $30 per month.