Question

You have $2,500 on a credit card that charges a 20% interest rate. If you want to pay off the credit

card in 5 years, how much will you need to pay each month (assuming you don't charge anything
new to the card)?

Answer 1

Assuming that the interest rate is compounded monthly, you will need to pay $51.20 each month for 5 years in order to pay off the credit card…