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Suppose you owe ​$1200 on your credit card. The annual percentage rate​ (APR) is 18​%, compounded...

Suppose you owe ​$1200 on your credit card. The annual percentage rate​ (APR) is 18​%, compounded monthly. The credit card company says your minimum monthly payment is ​$21.82. a. If you make only this minimum​ payment, how long will it take for you to repay the ​$1200 balance​ (assuming no more charges are​ made)? b. If you make the minimum payment plus ​$10.01 extra each month​ (for a total of ​$31.83​), how long will it take to repay the ​$1200 ​balance? c. Compare the total interest paid in Part​ (a) with the total interest paid in Part​ (b).

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Rahul Sunny answered 2 years ago
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