Paying off a debt

You currently owe $10,000 on a credit card with a 17% interest rate and a minimum payment of $10 or 2% of your balance.

  • How soon will you pay off this debt if you make the minimum payment each month?
  • How much total interest will you pay using that method?
  • Calculate how soon you would pay off this debt if you paid $100 per monthly payment.

Sample Solution