You owe $1500 on a credit card that charges 2% interest each month. You can pay...

You owe $1500 on a credit card that charges 2% interest each month. You can pay $50 each month with no new charges. What is the equilibrium value? When will the account be paid off?

A) Equilibrium value is 2500 and the account will be paid off approximately after 47 months.

B) Equilibrium value is 50 and the account will be paid off approximately after 47 months.

C) Equilibrium value is 2500 and the account will be paid off approximately after 40 months.

D) Equilibrium value is 1500 and the account will be paid off approximately after 40 months.

E) All the above is incorrect

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Expert Solution

Colby Messinger answered 1 year ago

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