SOLUTION: If my payments on merchandise cost me a $120 monthly for 24 months but I choose to pay $220 on my merchandise monthly. How many months would it be take until merchandise is paid in

Question 984637: If my payments on merchandise cost me a $120 monthly for 24 months but I choose to pay $220 on my merchandise monthly. How many months would it be take until merchandise is paid in full?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
it depends on the interest rate you are being charged per month.

at 0 interest rate per month, the present value of the loan payments of 120 per month for 24 months is 2880 and you will be able to pay it off in 13.09090909 months if you raised your monthly payment from 120 to 220.

at .01 interest rate per month (apr = 12%), the present value of the loan payments of 120 per month for 24 months is 2549 and you will be able to pay it off in 12.37693375 months if you raised your monthly payment from 120 to 220.

at .02 interest rate per month (apr = 24%), the present value of the loan payments of 120 per month for 24 months is 2269 and you will be able to pay it off in 11.66977605 months if you raised your monthly payment from 120 to 220.

so you're talking somewhere between 13.09090909 months and 11.66977605 months depending on the interest rate per month you are being charged.

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