Question

You decide to use your department store charge card.. a lot! After seven weeks you have racked up $1, 400 of debt. Your minimum monthly payment is $45, and is paid at the end of each month. If the APR is 16.80%, how long will it take you to pay the loan off? (Assume that you make the minimum payment until the debt is entirely paid off.) a. no solution, you will never pay off the debt. b. 41 months c. 131 months d. 55 months

Answer 1

41 months will it take you to pay the loan off

Step-by-step explanation:

Given,

$1, 400 of debt

Monthly payment is $45

If the APR is 16.80% ,

Suppose you make the least contribution until the debt is paid out in full then 41 months will it take you to pay the loan off.

Since the debt is $1400