Question

Your credit card charges 2% interest per month on unpaid balances. You maintain a balance of $656. How long will it take to pay off the credit card balance, assuming you make the minimum payment of $45 each month?

Answer 1

Ans 17.41 months

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods
P =	r (PV)
	1 - (1 + r )-n
45 =	2% * 656
	1 - (1 / (1 + 2%)^n))
45 =	13.12
	1 - (1 / (1 + 2%)^n))
1 - (1 / (1 + 2%)^n)) =	13.12 / 45
1 - (1 / (1 + 2%)^n)) =	0.291556
n =	17.41 months