Question

Read the short scenario and answer the question that follows. ​Lisa's credit card balance this month is​ $969.16. Her APR​ (annual percentage​ rate) is 15.24​ %. The minimum payment due is​ $20.00. If she pays only the minimum each month and does not add any more​ charges, how long will it take her to pay off the entire​ balance?

Answer 1

76 months

Step-by-step explanation:

If Lisa only pays the $20 minimum monthly payment, it will take her 76 months to repay her debt (6 years and 4 months). She will also end up paying almost $540 in interest.

If you have a credit card it is never a good idea to pay only the minimum monthly payment since you will end up paying a lot of interest and usually other fees and charges apply.