Question

You have a credit card with a balance of $12,100 and an APR of 17.5 percent compounded monthly. You have been making monthly payments of $235 per month, but you have received a substantial raise and will increase your monthly payments to $285 per month. How many months quicker will you be able to pay off the account

Answer 1

Answer:

you will pay off your debt in 32 months less

Explanation:

I prepared two amortization schedules:

if you pay $235, it will take you 99 months to pay off your debt

if you pay $285, it will take you 67 months to pay off your debt