Question

Three friends each have a balance of $5,000 on their credit cards with a 25% APR. They’ve decided that they will not make any other purchases on their cards until they pay off the debt and make varying amounts of monthly payments:

Sharon can only make the credit card minimum payment, $150 per month


Cecilia can set aside $400 per month to pay back her debt


Alexander can pay $800 per month for his credit card



After 5 months, how much will each person have paid in interest so far and how large will their remaining balance be? Use the formulas below to calculate their interest and balance for each month.

Answer 1

Answer: 4,000 for Alexander and Cecelia 2000 and 700 for sharon

Step-by-step explanation: Each person has paid in interest so far and how large will their remaining balance be Sharon=700 per month, Cecelia=2000 per month, Alexander=4000 per month

We have given that,

Three friends each have a balance of $5,000 on their credit cards with a 25% APR. They've decided that they will not make any other purchases on their cards until they pay off the debt and make varying amounts of monthly payments:

We have to determine how much will each person has paid in interest so far and how large will their remaining balance be.

Sharon=700 per month

Cecelia=2000 per month

Alexander=4000 per month