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Question - Imagine you have a balance of $800 on a credit with 24% Annual Percentage Rate, or APR, so that interest is added monthly at 2% per month. The minimum payment is 5% of the balance each month, or $20, whichever is higher.
a) If you stop making purchases on the card, and only pay the minimum payment, how long before you pay off this credit card debt?
b) How does the answer change if the minimum payment were fixed at 2%?
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