Question

Mando has a balance of $4700 on a credit card with an APR of 19.6%. Paying off his balance in which of the following lengths of time will result in him paying the least amount of interest? A.10 months B.16 months C.15 months D.12 months

Answer 1

A. 10 months. The least amount of interest = shortest length in time

Answer 2

Answer:

A. 10 months

Explanation:

Credit card payments have an annual percentage rate that is the annual rate that is charged for the purchases you made with the credit card. This rate is divided by 12 months and the result is what you are charged monthly for interests for the lenght of time that you chose for paying the purchases made. This means that with a longer period of time you will pay more interest. According to this, the length of time that will result in Mando paying the least amount of interest is 10 months.