You owe $3629 on your credit card which has a 17.2% APR. (a) How much interest...
You owe $3629 on your credit card which has a 17.2% APR. (a) How much interest do you get charged this month on your balance of $3629? (b) You make a payment of $850. What is your new balance for the next month? (c) How many total months will it take you to pay off the debt if you continue to make $850 payments each month (the last month you would pay just what you owe)? (a) The interest is $ _______. (Round to the nearest cent as needed.) (b) The new balance for the next month is $ _______. (Round to the nearest cent as needed.) (c) It would take _____ payments to pay off the debt.
Homework Answers
It will take 5 months to pay off the balance. The total interest is $144.05 and the next month debt value is 2831.01567
| Month | Debt Value | Payment | Interest | Payment Value excludes Int | Balance of Debt |
| 1 | 3629 | 850 | 52 | 797.9843333 | 2831.016 |
| 2 | 2831.01567 | 850 | 41 | 809.4221088 | 2021.594 |
| 3 | 2021.59356 | 850 | 29 | 821.0238257 | 1200.57 |
| 4 | 1200.56973 | 850 | 17 | 832.7918338 | 367.7779 |
| 5 | 367.777898 | 373 | 5 | 367.7778984 | 0 |
| Total | 3773.049 | 144.05 | 3,629.00 |
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