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:

Acquaintances

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Voodoo Doll

A figurine used in certain rituals, often associated with the belief in magical practices, to represent a person for purposes of casting spells on them, typically for harm.

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Feeling annoyed or angry because one is unable to achieve or do something.