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Three friends each have a balance of $5,000 on their credit cards with a 25% APR. They’ve decided that they will not make any other purchases on their cards until they pay off the debt and make varying amounts of monthly payments:




Sharon can only make the credit card minimum payment, $150 per month



Cecilia can set aside $400 per month to pay back her debt



Alexander can pay $800 per month for his credit card




After 5 months, how much will each person have paid in interest so far and how large will their remaining balance be? Use the formulas below to calculate their interest and balance for each month. (Format $x,xxx.xx)

Respuesta :

### Sharon:
- Monthly Interest: \( \$5,000 \times \left( \frac{0.25}{12} \right) = \$104.17 \)
- Principal Payment: \( \$150 - \$104.17 = \$45.83 \)
- New Balance: \( \$5,000 - \$45.83 = \$4,954.17 \)

### Cecilia:
- Monthly Interest: \( \$5,000 \times \left( \frac{0.25}{12} \right) = \$104.17 \)
- Principal Payment: \( \$400 - \$104.17 = \$295.83 \)
- New Balance: \( \$5,000 - \$295.83 = \$4,704.17 \)

### Alexander:
- Monthly Interest: \( \$5,000 \times \left( \frac{0.25}{12} \right) = \$104.17 \)
- Principal Payment: \( \$800 - \$104.17 = \$695.83 \)
- New Balance: \( \$5,000 - \$695.83 = \$4,304.17 \)

After 5 months, here are the values for each person:

### Sharon:
- Total interest paid: \( 5 \times \$104.17 = \$520.85 \)
- Remaining balance: \$4,954.17

### Cecilia:
- Total interest paid: \( 5 \times \$104.17 = \$520.85 \)
- Remaining balance: \$4,704.17

### Alexander:
- Total interest paid: \( 5 \times \$104.17 = \$520.85 \)
- Remaining balance: \$4,304.17

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