Michael Has a Credit Card Debt of $60,000 That Has

question 104

Multiple Choice

Michael has a credit card debt of $60,000 that has a 10% APR, compounded monthly. The minimum monthly payment only requires him to pay the interest on his debt. He receives an offer for a credit card with an APR of 9% compounded monthly. If he rolls over his debt onto this card and makes the same monthly payment as before, how long will it take him to pay off his credit card debt?

• A) 298 months
• B) 299 months
• C) 306 months
• D) 308 months

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Definitions:

Facility Cost

The expenses associated with the physical location and maintenance of a business's operations, including rent, utilities, and property taxes.

Regression Analysis

A statistical method used to model and analyze the relationships between a dependent variable and one or more independent variables.

Coefficient of Determination

A statistical measure, indicated by R², that shows the proportion of variance in the dependent variable predictable from the independent variable(s).

Goodness of Fit

A statistical measure that indicates how well observed data correspond to the expected outcome under a specified model.