Question

Miguel has a credit card bill of $7,250 with an interest rate of 16%. To pay his bill off in one year, he must make monthly payments of $657.80. To pay his bill off in 18 months, he must make monthly payments of $455.71. How much extra will he pay if he wants to make the lower monthly payments?

Answer 1

Answer:

$309.18

Step-by-step explanation:

To pay off in 12 months = 12 * 657.80 = $7,893.6

To pay off in 18 months = 18 * 455.71 = $8202.78

If he takes the lower monthly payments, he will end up paying 8202.78 - 7893.6 = $309.18