Suppose you owe $1,100 on your credit card. The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $19.80. (4.15) Solve, a. If you make only this minimum payment, how long will it take for you to repay the $1,100 balance (assuming no more charges are made)? b. If you make the minimum payment plus $10 extra each month (for a total of $29.80), how long will it take to repay the $1,100 balance? c. Compare the total interest paid in Part (a) with the total interest paid in Part (b).

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A: Effective Annual Rate(EAR) = [(1+ nominal rate/n)^n]-1 where, n = compounding period

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A: Working note:

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A: Hi there, Thanks for posting the question. But, per Q&A honor code, The solution for the first…

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A: Formulas:

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Q: payment

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