Question

You're reading material illustrates a typical example of what happens if you pay just the minimum monthly payment every month on a credit card balance in this example approximately how long will it take to pay off the original deck completely.

A.2yrs
B.5yrs
C.12yrs
D. The debt will never be completely repaid.

Answer 1

c. 12 years

Explanation:

according to the book, it says it would take 12 years to get it paid off with just the minimum payments

Answer 2

The correct answer is D. The debt will never be completely repaid.

Explanation:

Since the question refers to a credit card debt on which the minimum monthly payment is paid for an indefinite period of months, in this case the debt will never be fully repaid, since the minimum payments will be constantly added values as interest, which will increase the value of the debt due to compound interest.