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A list of reasons on why could it take 36 years and $61,060 to pay off a $10,000 credit card dept. Help I need the answer fast​
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A list of reasons on why could it take 36 years and $61,060 to pay off a $10,000 credit card dept.

Help I need the answer fast​

User MSIslam
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1 Answer

5 votes

Answer:

This is due to compound interest on the credit card bills.

Step-by-step explanation:

Credit card debt of $10,000 is repaid when its due. The bank lends the credit card amount and then charges interest on the debt amount. The compound interest is added to the debt amount and then future value of the debt is greater than the present value.

User Uberrebu
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