Suppose you owe $1400 on your credit card. The APR is 12%, compounded monthly. The credit card company says your minimum monthly payment is $20.84.
a. If you make this minimum payment, how long will it take for you to repay the $1400 balance?
b. If you make payments of $31.53, how long will it take you to pay of the $1400 balance?
c. Compare the interest paid in part a. vs part b.