A credit card charges an annual rate of 14% compunded monthly. This month's bill is $6000. The minimum payment is $125. Suppose i keep paying minimum payment is $125 each month. What is total interest paid until the whole debt is paid out?
Added by Rebecca C.
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In this case, the annual rate is 14% and it compounds monthly. Monthly interest rate = Annual interest rate / 12 Monthly interest rate = 14% / 12 = 1.1667% (or 0.011667 as a decimal) Show more…
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