You bought a TV for $900 and charged it to your credit card with 22% APR....

You bought a TV for $900 and charged it to your credit card with 22% APR. You will be diligent in spending monthly payments in an amount that would retire the card balance in exactly 5 years. After 3 years of payments you refinance the remaining balance to a new card with 12% APR. After 3 years you can afford a high monthly payment of $40.

A) what is the balance that will get transferred to the new card after 3 years?

B) How many months will it take to puff of credit card balance with the new $40 payment assuming no other purchases?

Expert Solution


As nothing was mentioned excel is used. All figures rounded to 2 decimals

jeff jeffy answered 2 weeks ago

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