1. Assume that you have c

1. Assume that you have c

1. Assume that you have credit card debt of $3150 on a card that charges 15% (or 1.25% per month). This is a VERY COMMON interest rate on credit cards. Interest is compounded monthly and you commit to not making any more charges on this card. a. (2 points) You also commit to making the minimum monthly payments of $50 to pay off the balance owed. How long (in months) will it take you to pay off your credit card debt? HINT: You must compute this problem (on your calculator) in monthly terms, not years. b. (2 points) Using the information from #1 for this problem. When you have finally paid off your credit card, how much in total have you paid in interest on that credit card debt of $3250? c. (2 points) What is the lesson in this problem? Carefully explain your answer.

%d bloggers like this: