You have $4,800 of credit card debt you've amassed. The APR is 18%; charging 1.5% interest...

You have $4,800 of credit card debt you've amassed.

The APR is 18%; charging 1.5% interest per month. The credit card has an annual fee of $99 that will accrue in January of the year following your graduation. Your limit is $10,000; so you can still use it if you need to.

Lay out a strategy to pay this card off. How might that strategy be complicated by student loan debt and living expenses? How long until this credit card was paid off if you dedicated $200 a month towards this goal?

Expert Solution

The strategy is to make the installment of 200 for such period and invest the remaining limit so that you can earn income from it.

Appreciate your feedback

jeff jeffy answered 1 year ago

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