Calvin Johnson has a $6,000 debt balance on his Visa card that charges 11.1 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 4 percent of his debt balance, which is $240. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $240 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 5 percent. If Calvin made monthly payments of $300 at the end of each month, how long would it take to pay off his credit card?

Calvin Johnson has a $6,000 debt balance on his Visa card that charges 11.1 percent APR compounded monthly. In 2009, Calvin's minimum monthly payment is 4 percent of his debt balance, which is $240. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $240 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 5 percent. If Calvin made monthly payments of $300 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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