ACADEMY You owe 1,853.42 on a credit card with a limit of $5,000.00 at a rate of 17.5% APR. You pay 450.00 the first 2 months and then 175.00 until the bill is paid off. You pay the bill on the due date each month Complete the table showing the decreasing debt and fully answer the questions below .

Question

ACADEMY You owe 1,853.42 on a credit card with a limit of $5,000.00 at a rate of 17.5% APR. You pay 450.00 the first 2 months and then 175.00 until the bill is paid off. You pay the bill on the due date each month Complete the table showing the decreasing debt and fully answer the questions below .

Answer 1

Month Payment Remaining Debt

1 450.00 1,403.42
2 450.00 852.42
3 175.00 677.42
4 175.00 502.42
5 175.00 327.42
6 175.00 152.42
7 175.00 -22.58

Question 1: How many months will it take to pay off the credit card?
- It will take 7 months to pay off the credit card.

Question 2: How much interest will you pay in total?
- The total interest paid depends on the assumption of regular payment and no additional charges during the payment period. In this case, the total interest paid is $853.42.

Question 3: What is the minimum monthly payment required?
- The minimum monthly payment required is not specified in the information provided. It is typically a percentage of the outstanding balance or a fixed amount, whichever is higher, as determined by the credit card issuer.