What is the amount of interest in the first payment

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Reference no: EM13159786

Many college students have Visa credit cards that carry an interest rate of %u201Csimple 24% per year%u201D (that is, 2% per month). When the balance on such a card is $5000, the minimum payment is $110.25.

(a.) What is the amount of interest in the first payment?

(b.) How long will it take, in months, to pay off the balance, if the cardholder continues to make payments of $110.25 per month and adds no other charges to the card?

Reference no: EM13159786

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