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.

Question

Quizplus · Accepted Answer

Paying more than the minimum payment on your credit card bill reduces the principal balance faster, which in turn reduces the payoff time because less interest accumulates over time.

When You Get Your Credit Card Bill, If You Make