Read the short scenario and answer the question that follows. Lisa's credit card balance this month is $969.16. Her APR (annual percentage rate) is 15.24 %. The minimum payment due is $20.00. If she pays only the minimum each month and does not add any more charges, how long will it take her to pay off the entire balance?

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Timothy Mueller

1 March, 06:13

Read the short scenario and answer the question that follows. Lisa's credit card balance this month is $969.16. Her APR (annual percentage rate) is 15.24 %. The minimum payment due is $20.00. If she pays only the minimum each month and does not add any more charges, how long will it take her to pay off the entire balance?

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Sydnee Orr · Answer 1

76 months

Explanation:

If Lisa only pays the $20 minimum monthly payment, it will take her 76 months to repay her debt (6 years and 4 months). She will also end up paying almost $540 in interest.

If you have a credit card it is never a good idea to pay only the minimum monthly payment since you will end up paying a lot of interest and usually other fees and charges apply.