Paying off credit cards

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Paying off credit cards

Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $420. The minimum payment on the card is only $10 per month.

If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Round your answer to the nearest whole.

________ month(s)

If Simon makes monthly payments of $30, how many months will it be before he pays off the debt? Round your answer to the nearest whole.

________ month(s)

How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan. Make sure you use 3 decimal places for N. Round your answer to the nearest cent.

$   ________

Reference no: EM131051266

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