A credit card has a balance of $⁢2,000 and a 15% APR. If a fixed payment of $100 is made each month, how will the balance after a year compare to making only the minimum payment of 2% of the balance each month?

Question

Revolt · Accepted Answer

The balance will be lower with the fixed payment because 2 percent of 2 dollars comma 000 is less than 100 dollars.

Practice Exam

A credit card has a balance of $⁢2,000 and a 15% APR. If a fixed payment of $100 is made each month, how will the balance after a year compare to making only the minimum payment of 2% of the balance each month?

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