Question

Assume your balance is back at $0. you desperately want a tv for your bedroom, but you don’t have any money saved. you put the $229 tv on your credit card and make the minimum monthly payment each month. use the credit card calculator to determine how much total interest you’ll pay on this debt.

A. What is the initial cost of the TV on the credit card?
B. If the minimum monthly payment is $20, how many months will it take to pay off the TV?
C. Calculate the total interest paid on the $229 TV with minimum monthly payments.
D. How much will the TV cost in total after interest is included?

Answer 1

The initial cost of the TV on the credit card is $229. It will take 12 months to pay off the TV with a minimum monthly payment of $20. The total interest paid on the $229 TV with minimum monthly payments cannot be calculated without knowing the interest rate.

Step-by-step explanation:

A. The initial cost of the TV on the credit card is $229.

B. If the minimum monthly payment is $20, it will take 12 months to pay off the TV.

C. To calculate the total interest paid on the $229 TV with minimum monthly payments, we need to know the interest rate on the credit card.

D. Without the interest rate, we cannot determine the total cost of the TV after interest is included.