Calvin Johnson has a $5,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 2 percent of his debt balance, which is $100. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $100 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 3 percent. If Calvin made monthly payments of $150 at the end of each month, how long would it take to pay off his credit card?

Calvin Johnson has a $5,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 2 percent of his debt balance, which is $100. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $100 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 3 percent. If Calvin made monthly payments of $150 at the end of each month, how long would it take to pay off his credit card?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Calvin Johnson has a $4,000 debt balance on his Visa card that charges 13.8 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 3 percent of his debt balance, which is $120.How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $120 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 4 percent. If Calvin made monthly payments of $160 at the end of each month, how long would it take to pay off his credit card? a. If Calvin made monthly payments of $120 at the end of each month, how long would it take to pay off his credit card?
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