Question

How long would it take you to pay off a credit card with a balance of $6,509 assuming no further purchases, APR of 18.2%, and monthly payments of $108? Note: You can solve this with a financial calculator or by trial and error using the four multiple choices below?

176 months

163 months

43 months

120 months

Answer 1

Amwan mouths it will take to repay the balance of Calculation of $ 6,509. & Present value Formula, we will use here Present value of annuity px [ 1-C1taates Equate for n. late $6509 = $108 x | '- (1+0=182 ] [1- 21.015161)* ] Q182 12 $6509 $108 -X 0.182 12 n 0.914073 = (1015167)" I - 0.914073 (1-015167) 1 (1-015167) to 1-0.914073) Apply log both the side log 0.085927 log (1.015167)" log (11-637786) o log (1-015167) log (11-637786) n no tog (1.015167) n 1.065870 163 months 0.006537 So, it will take 163 months to pay off the balance.