Final answer:
Paying off a $2,000 credit card debt by making minimum payments of $25 per month can take approximately 15 years, costing the individual more than twice the borrowed amount in interest.
Step-by-step explanation:
To determine how long it will take to pay off a $2,000 credit card debt by making just the minimum payment required by the card company ($25/month), you must factor in the interest that accumulates each month. Credit card companies often require a minimum payment that mostly covers the interest, with only a small portion reducing the principal amount.
However, without the specific annual percentage rate (APR), we can only give a rough estimate. If we reference the information provided, making minimum payments can lead to a repayment period of approximately 15 years for a $2,000 debt. This lengthy period results in paying more than twice the amount borrowed due to interest, implying that the individual would pay an additional $4,000 on top of the initial $2,000.
In summary, it is crucial to understand the terms of your credit card agreement and the long-term consequences of making only minimum payments. This scenario highlights just how expensive and time-consuming it can be to pay off credit card debt if one does not pay more than the minimum required payment.