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. To pay off the $5,000 in five years, Jill will have to make a minimum payment of $118.95 per month.

How much more does Jill have to pay when the length of the loan changes from 3 years to 5 years?

A) $1,239.88

B) $1,957.68

C) $2,137.00

D) $897.12

Question

Fifi

Mathematics

10 September, 10:12

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. To pay off the $5,000 in five years, Jill will have to make a minimum payment of $118.95 per month.

How much more does Jill have to pay when the length of the loan changes from 3 years to 5 years?

A) $1,239.88

B) $1,957.68

C) $2,137.00

D) $897.12

+4

Answers (2)

Know the Answer?

Terry · Answer 1

Jill - balance of 5,000; 15% annual interest. pay in 3 years. monthly payment 173.33

173.33 x 36 = 6,239.88

Jim - balance of 5,000; 10% annual interest. pay in 5 years. monthly payment 106.24

106.24 x 60 = 6,374.40

6,374.40 - 6,239.88 = 134.52 Jim.

But, I found an answer to this question that says B.) Jim will pay 250 more.

Layton Ford · Answer 2

3 years = 36 months

173.33 * 36 = 6239.88

5 years = 60 months

118.95 * 60 = 7137.00

7137.00 - 6239.88 = 897.12

Answer is D