Many college students have Visa credit cards that carry an interest rate of “simple 24% per year”…

Many college students have Visa credit cards that carry an interest rate of “simple 24% per year”…

Many college students have Visa credit cards that carry
an interest rate of “simple 24% per year” (that is, 2% per month).When the balance on such a card is $5,000,
the minimum payment is $110.25.

a)What is the
amount of interest in the first payment?

b)How long will
it take, in months, to pay off the balance, if the cardholder continues to make
payments of $110.25 per month and adds no other charges to the card?

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