SOLUTION: You decide to quit using your credit card and want to pay off the balance of $3,000 in 2 years. Your interest rate is 20.05% compounded monthly.

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Question 1187247: You decide to quit using your credit card and want to pay off the balance of $3,000 in 2 years. Your interest rate is 20.05% compounded monthly.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
using the financial calculator at https://arachnoid.com/finance/index.html, you would do the following.

these are the inputs.



this the output.



this is what the end of month by end of month remaining balance looks like.



with the formulas in the calculator, you use the interest rate percent per year divided by 12 to get the interest rate percent per month.

with the excel calculations, you use the interest rate divided by 12.

the interest rate is the percent divided by 100.

in both, your investment period is 24 months.

that's 2 years multiplied by 12 = 24 months.

in the calculator, your inputs are everything but pmt and your output is pmt.

you would need to pay 152.76 at the end of each month for 24 months, at the end of which the loan is paid off.

20.05% divided by 12 = 1.670833333....%

.2005 divided by 12 = .01670833333.....