Question

10. (02.04 LC)

The balance on a certain credit card will be paid off in 53 months by making on-time minimum monthly payments or in 21 months by paying an additional $40.00 per month. What percent of time will
be saved by paying the extra $40.00 per month? (1 point)
39
40%
60%
62

Answer 1

The Solution:

Given:

The total months needed to pay off the balance = 53 months

When an additional $40 is paid every month, the number of months needed to pay off the balance is reduced to 21 months.

We are asked to find the percentage of the time that will be saved by paying the extra $40 per month.

So, the required percentage is

`\begin{gathered} \frac{\text{ time saved}}{\text{ total time}}*100 \\ \\ (53-21)/(53)*100=(32)/(53)*100=60.377\approx60\% \end{gathered}`

Therefore, the correct answer is 60% [option 3]