Simon recently received a credit card with an 18% nominal annual interest rate. With the...
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Finance
Simon recently received a credit card with an 18% nominal annual interest rate. With the card, he purchased an Apple iPhone 12 for $879. The minimum payment on the card is $20 per month.
a) If Simon makes only the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Round your answer to the nearest whole month.
b) If instead, Simon adds just one additional dollar to his monthly payment, how many months quicker will he pay off the debt? Round your answer to the nearest whole month.
c) Simons wants to finish paying off in just two years. He found an internet offer from a company willing to pay off his credit card balance if he pays them $50 per month for 24 months. Is this a good deal for Simon? Why?
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