Question

Question 3 (1 point) You owe $11,000 on your credit card. Horrified, you decide to make no more purchases and make payments of $400 per month. How long will it take you to pay off your credit card if it charges interest at J12-18% and your first payment is in one month. You may give your answer in months

Answer 1

We will need to pay $400.00 every month for 2 years 11.72 months to payoff the whole amount.

Total payment including interest = $14289.55

	Beginning Balance	Interest	Principal	Ending Balance
1	$11,000.00	$165.00	$235.00	$10,765.00
2	$10,765.00	$161.48	$238.52	$10,526.48
3	$10,526.48	$157.90	$242.10	$10,284.37
4	$10,284.37	$154.27	$245.73	$10,038.64
5	$10,038.64	$150.58	$249.42	$9,789.22
6	$9,789.22	$146.84	$253.16	$9,536.06
7	$9,536.06	$143.04	$256.96	$9,279.10
8	$9,279.10	$139.19	$260.81	$9,018.28
9	$9,018.28	$135.27	$264.73	$8,753.56
10	$8,753.56	$131.30	$268.70	$8,484.86
11	$8,484.86	$127.27	$272.73	$8,212.13
12	$8,212.13	$123.18	$276.82	$7,935.32
year 1 end
13	$7,935.32	$119.03	$280.97	$7,654.35
14	$7,654.35	$114.82	$285.18	$7,369.16
15	$7,369.16	$110.54	$289.46	$7,079.70
16	$7,079.70	$106.20	$293.80	$6,785.89
17	$6,785.89	$101.79	$298.21	$6,487.68
18	$6,487.68	$97.32	$302.68	$6,185.00
19	$6,185.00	$92.77	$307.23	$5,877.77
20	$5,877.77	$88.17	$311.83	$5,565.94
21	$5,565.94	$83.49	$316.51	$5,249.43
22	$5,249.43	$78.74	$321.26	$4,928.17
23	$4,928.17	$73.92	$326.08	$4,602.09
24	$4,602.09	$69.03	$330.97	$4,271.12
year 2 end
25	$4,271.12	$64.07	$335.93	$3,935.19
26	$3,935.19	$59.03	$340.97	$3,594.22
27	$3,594.22	$53.91	$346.09	$3,248.13
28	$3,248.13	$48.72	$351.28	$2,896.85
29	$2,896.85	$43.45	$356.55	$2,540.31
30	$2,540.31	$38.10	$361.90	$2,178.41
31	$2,178.41	$32.68	$367.32	$1,811.09
32	$1,811.09	$27.17	$372.83	$1,438.25
33	$1,438.25	$21.57	$378.43	$1,059.83
34	$1,059.83	$15.90	$384.10	$675.72
35	$675.72	$10.14	$389.86	$285.86
35.72	$285.86	$3.69	$285.86	$0.00