Question

Assuming that you do not charge anything else to your discover card and that you continue to make the current month's minimum required payment until the debt is repaid, how long will it take to totally repay your outstanding balance?

Answer 1

Assuming you make only the minimum payments, it would take approximately 15 years to totally repay your outstanding credit card balance.

Step-by-step explanation:

To calculate how long it will take to totally repay your outstanding credit card balance, you need to consider the minimum monthly payment and the interest rate. Let's say the outstanding balance is $2,000 and the minimum payment is $60. Each month, a portion of the $60 payment goes towards reducing the balance (principal) and the rest is interest. If you continue making the minimum payments, it would take approximately 15 years to repay the $2,000 balance. However, it's important to note that the total amount repaid would be over twice the original borrowed amount, due to the interest charged.