Question

Elie reached her credit limit of $6,000. The interest rate on her credit card is 12%. Using an online calculator, Elie determines that if she stops using the card and pays $200 per month for the next 36 months, she will pay off her debt. How much interest will Elie have paid when her credit card balance is $0?

Answer 1

Answer:

$1200

Step-by-step explanation:

The credit card limit of Elie = $6,000

Amount Ellie decides to pay per month to clear her debt = $200

No. Of months to be paid = 36

Therefore , the total amount Ellie pays in 36 months = 200 x 36 = $7200

The interest that Ellie will pay when her credit card balance is $0 =

The total amount that Ellie pays - Amount Ellie used from her credit card balance

                    = $7200 - $6000

                    = $1200