Question

You have accumulated $1,048.34 in debt by buying things on Amazon during quarantine. The minimum monthly payment is $24.22, If you make only the minimum payment, it will take you 65 months to pay it off. If you pay $10 more per month, you will pay it off in 35 months. How much total interest will you save?

Answer 1

Given about a debt on credit card,

Minimum payment = $24.22

if minimum payment is made, it will take a total of 65 months to payoff the credit.

So, total amount paid in 65 months = minimum payment*number of months = 24.22*65 = $1574.3

If addition $10 per month is paid, the credit can be cleared in 35 months

So, monthly payment = 24.22 + 10 = $34.22

So, Total payment made in this condition is 34.22*35 = $1197.7

So, interest saved = total amount is 1st condition - total amount in 2nd condition = 1574.3 - 1197.7 = $376.6