SOLUTION: The annual interest rate on a credit card is 16.99%. If the minimum payment of $40 is made each month, how many months will it take to pay off an unpaid balance of $818
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Question 1158693: The annual interest rate on a credit card is 16.99%. If the minimum payment of $40 is made each month, how many months will it take to pay off an unpaid balance of $818.85? Assume that no new purchases are made with the credit card. Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! unpaid balance is 818.85
paying 40 dollars at the end of each month at 16.99% interest compounded monthly will take 24.3 months before the loan is paid off.
i used the calculator at
my inputs were:
present value = 818.85
future value = 0
interest rate per year = 16.99%/12 = 1.425833333...% per month
payment of 40 dollars made at the end of each month.
the output from the calculator was:
number of months = 24.3
here's a picture of the calculator inputs and outputs.
