with only a part time job and the need for a professional wardrobe, Rachel quickly maxed...

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Finance

with only a part time job and the need for a professionalwardrobe, Rachel quickly maxed out her credit card the summer aftergraduation. With her first full-time paycheck in August, she vowedto pay $230 each month toward paying down her $6,277 outstandingbalance and not to use the card. The card has an annual interestrate of 23 percent. How long will it take Rachel to pay for herwardrobe? Should she shop for a new card? Why or why not?

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Transcribed Image Text

with only a part time job and the need for a professionalwardrobe, Rachel quickly maxed out her credit card the summer aftergraduation. With her first full-time paycheck in August, she vowedto pay $230 each month toward paying down her $6,277 outstandingbalance and not to use the card. The card has an annual interestrate of 23 percent. How long will it take Rachel to pay for herwardrobe? Should she shop for a new card? Why or why not?

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