SOLUTION: Assume you have a balance of $900 on a credit card with an APR of 24% or 2% per month. You start making payments of $150 per month, but at the same time charge an additional $60 pe

Algebra ->  Finance -> SOLUTION: Assume you have a balance of $900 on a credit card with an APR of 24% or 2% per month. You start making payments of $150 per month, but at the same time charge an additional $60 pe      Log On


   

Question 1050773: Assume you have a balance of $900 on a credit card with an APR of 24% or 2% per month. You start making payments of $150 per month, but at the same time charge an additional $60 per month to the credit card. Assume the interest for a given month is based on the balance for the previous month.
Month 0 - $900
Month 1- What would be the interest and the new balance? (Payment is $150)
Month 2 - What would be the interest and new balance?( Payment is $150)
Month 3- What would be the interest and new balance?(Payment $150)
Month 4- What would be the interest and new balance?(Payment is $150)
Month 5- what would be the interest and new balance?(Payment is $150)
Month 6- What would be the interest and new balance?(Payment is $150)
Month 7- What would be the interest and new balance?(Payment is $150)
Month 8- What would be the interest and new balance?(Payment is $150)
Month 9- What would be the interest and new balance ?(Payment is $150)
Month 10- What would be the interest and new balance?(Payment is $150)
Month 11- What would be the interest and new balance?(Payment is $150)
How long does it take to pay off your debt?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
your solution, as i understand and interpret the problem is shown below:

the concept used is:

your remaining balance is 900 at month 0.
month 0 is the beginning of month 1.
month 1 is the end of month 1 and the beginning of month 2.
etc.

pmt is the monthly payment of 150 that is made at the end of each month.

int is the interest rate that is calculated from the remaining balance of the previous month.

in month 1, the interest rate is .02 * 900 = 18.00.
in month 2, the interest rate is .02 * 828 = 16.56.
etc.

chg is the amount of additional purchases made during the previous month.

for example, the 60 shown in month 1 is the amount of additional charges incurred between month 0 and month 1.

that means the additional charges incurred between the beginning of month 1 and the end of month 1.

the balance is paid off in month 12.

the negative balance is the credit you would receive back because you paid more than was in the account.

$$$