Question

PLEASEEEEEE HELPPPP

Jill has a balance of $5,000 on her credit card with an annual interest rate of 15%. To pay off the $5,000 in three years, Jill will have to make a minimum payment of $173. 33 per month. To pay off the $5,000 in five years, Jill will have to make a minimum payment of $118. 95 per month. How much more does Jill have to pay when the length of the loan changes from 3 years to 5 years?


A) $1,239. 88 B) $1,957. 68 C) $2,137. 00 D) $897. 12

Answer 1

Explanation:

The answer is D.

You take the rate per month, multiply by 12 months, and then the amount of years, then subtract from each other.

(173.33*12)*3=6239.88

(118.95*12)*5=7137.00

7137.00-6239.88= $897.12 more