You graduate and owe $10,000 on your credit card, which charges 1.5% monthly interest. You plan...
You graduate and owe $10,000 on your credit card, which charges 1.5% monthly interest. You plan on paying only the minimum payment of $200 until it is paid off. How many months will it take you to get out from under this debt? Is there a way to solve in Excel?
Homework Answers
Calculating Time Period required to payoff debt,
Using TVM Calculation,
N = [PV = 10,000, PMT = -200, FV = 0, I = 0.015]
N = 93.11 months
Time Period = 93.11 months
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use excel The typical American household owes approximately $15,000 in credit card debt. Assume you owe...
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The typical American household owes approximately $15,000 in credit card debt. Assume you owe this amount today and will not to put another charge on your credit card until this debt is paid off. Your credit card has an APR of 18% and minimum payments are calculated as 2% of outstanding balance or $15, whichever is greater. Using two (2) decimal places for dollar amounts, determine: a) How many years will it take to pay the entire amount...
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PAYING OFF CREDIT CARDS Simon recently received a credit card with an 13% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $470. The minimum payment on the card is only $10 per month. a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Do not round intermediate calculations. Round your answer to the nearest month. month(s) b. If Simon makes...
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excel
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