Question

Assume that you have a balance of $4000 on your Discover credit card and that you make no more charges. Assume that Discover charges 21% APR and that each month you make only the minimum payment of 2.5% of the balance.

What will the balance be after 6 years? (Round your answer to the nearest cent.)

Answer 1

Explanation:

Credit card interest is what are you are charged when you don't pay your credit card bill in full each month. It works as a daily rate calculated by dividing your annual percentage rate by 365, and then multiplying your current balance by the daily rate. That amount is then added to your bill.