Marys credit card situation is out of control because she


Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRS: Card 1, $4300, 21%; Card 2, $5800, 24%; and Card 3, $3400, 19%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 26% per month on her credit card payments. This company charges 15.5% APR. Is the company's claim correct? Assume a 10-year repayment period.

a) What is Mary's current min monthly payment?

b) What is Mary’s min monthly payment after loan consolidation?

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Financial Management: Marys credit card situation is out of control because she
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