Jorge has a credit card debt of $7,600.97. Jorge's credit card has an APR of 23.99% and asks that Jorge makes a minimum payment of 3.5% of his balance. For Jorge's current balance, what is the minimum payment he must make to the credit card company each month?

a.

$266.03

b.

$228.03

c.

$2,280.29

d.

$2,660.34

If Jorge (from #6) pays the minimum payment each month how many months will it take Jorge to pay off his balance, assuming he doesn't make any more charges to his credit card? Assume the card compounds monthly. You may want to use the TVM solver

a.

About 43 months

b.

About 23 months

c.

About 29 months

d.

About 30 months

Question

Cannoli

Mathematics

12 November, 12:25

Jorge has a credit card debt of $7,600.97. Jorge's credit card has an APR of 23.99% and asks that Jorge makes a minimum payment of 3.5% of his balance. For Jorge's current balance, what is the minimum payment he must make to the credit card company each month?

a.

$266.03

b.

$228.03

c.

$2,280.29

d.

$2,660.34

If Jorge (from #6) pays the minimum payment each month how many months will it take Jorge to pay off his balance, assuming he doesn't make any more charges to his credit card? Assume the card compounds monthly. You may want to use the TVM solver

a.

About 43 months

b.

About 23 months

c.

About 29 months

d.

About 30 months

+1

Answers (1)

Know the Answer?

Madilynn Ball · Answer 1

a. $266.03 a. About 43 months

Step-by-step explanation:

1. The calculation for the minimum payment is ...

0.035 * $7600.97 = $266.03

__

2. The answer choices assume that Jorge makes a payment of $266.03 each month. After the first month, the minimum payment due is less than that amount. If Jorge only pays the minimum payment each month the balance will decrease by about 1.5% each month, and it will take about 31 years before the minimum payment is below $1.

The TVM Solver says it will be about 43 months for the card to be paid off if Jorge pays $266.03 each month.