Isaac Realizes That He Charged Too Much on His Credit

question 73

Multiple Choice

Isaac realizes that he charged too much on his credit card and has racked up $5,000 in debt. If he can pay $225 each month and the card charges 17.55 percent APR (compounded monthly) , how long will it take him to pay off the credit card?

• A) 19.14 months
• B) 21.77 months
• C) 22.62 months
• D) 27.07 months

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Definitions:

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the issuing company.

Interest Payments

Payments made to lenders as compensation for borrowing money, typically calculated as a percentage of the principal amount.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.

Treasury Shares

Shares that were once outstanding and have been bought back by the company, which may be held in the company's treasury.