Hak Young has gone on to accumulate other credit card debt on top of what he owes from his Disney Land vacation and his total debit is now $13,864.82. He is getting worried about his debt and is determined to pay it off completely.
With all conditions of the account being the same as before, what would Hak Young’s minimum payment have to be in order to pay off his debt in 5 years?
What will be the total interest paid?
To calculate Hak Young's minimum payment in order to pay off his debt in 5 years, we need to know the interest rate on his credit card.
Once we have the interest rate, we can use the formula for calculating the minimum payment on a credit card:
Minimum Payment = (Debt / Number of Months) + (Debt * Interest Rate)
To calculate the total interest paid, we can use the following formula:
Total Interest = (Minimum Payment * Number of Months) - Debt
Without knowing the interest rate, we cannot provide an exact answer. However, I can guide you on how to calculate these values once you have the interest rate.