Assume You Owe a Large Balance on Your Credit Card

question 3

Multiple Choice

Assume you owe a large balance on your credit card and only pay the monthly minimum payment equal to 1% of the balance. If the annual interest rate on the credit card is 18%, how many years will it take you to pay off the balance assuming you do not make any additional charges to the card?

• A) 7.8 years
• B) 5 years
• C) You will never pay off the balance.
• D) Not enough information is provided to determine the time.

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Definitions:

Nasogastric Tube

A flexible tube that is inserted through the nose into the stomach to deliver food and medicine or to remove stomach contents.

Ileus

A temporary cessation of bowel motility, leading to obstruction symptoms without a physical blockage in the intestines.

Peristalsis

The involuntary constriction and relaxation of the muscles in the intestine or another canal, creating wave-like movements that push contents forward.

Anemia

A condition in which there is a deficiency of red cells or of hemoglobin in the blood, leading to fatigue, weakness, and shortness of breath.