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Jill has a balance of $5,000 on her credit card with an annual interest rate of 15%. To pay off the $5,000 in three years, Jill will have to make a minimum payment of $173.33 per month.

Jim has a balance of $5,000 on his credit card with an annual interest rate of 10%. To pay off the $5,000 in five years, Jim will have to make a minimum payment of $106.24 per month.

Who will pay more during the length of their loan and by how much?
A) Jim will pay $134.52 more.
B) Jim will pay $250.00 more.
C) Jill will pay $250.00 more.
D) Jill will pay $134.52 more.

User Souad
by
5.2k points

2 Answers

6 votes

Answer:

The answer is D because Jill has higher payments overall and the interest is just an added distractor.

Explanation:

User Jack Davidson
by
5.6k points
7 votes
Jim will pay $134.52 more.
User Paris Liakos
by
5.0k points
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