sujay maxed out his credit card at $5,000. the interest rate is 11.75%. using an online calculator, sujay…

sujay maxed out his credit card at $5,000. the interest rate is 11.75%. using an online calculator, sujay determines that if he stops using the card and pays $400 per month for the next 14 months, he will pay off his debt. how much interest will sujay have paid when his credit card balance is $0? $300 $426 $600 $883

sujay maxed out his credit card at $5,000. the interest rate is 11.75%. using an online calculator, sujay determines that if he stops using the card and pays $400 per month for the next 14 months, he will pay off his debt. how much interest will sujay have paid when his credit card balance is $0? $300 $426 $600 $883

Answer

Explanation:

Step1: Calculate total amount paid

The monthly payment is $400 and the number of months is 14. So the total amount paid is the product of the monthly - payment and the number of months. $400\times14 = 5600$

Step2: Calculate interest paid

The initial debt is $5000. The interest paid is the total amount paid minus the initial debt. $5600 - 5000=600$

Answer:

$600$