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When you get your credit card bill, if you make a payment larger than the minimum payment
A. you are wasting your current consumption and making TVM not work for you.
B. you will reduce the payoff time.
C. you will increase the payoff time.
D. you will not affect the payoff time.

Respuesta :

Answer:

The correct answer is letter "B": you will reduce the payoff time.

Explanation:

Making larger monthly payments on a credit card balance helps the debtor to pay the loan completely earlier. By making larger payments, the remaining balance will be lowered bit by bit until the point of fully covering the principal and interest of the debt contracted.