You just bought a TV for $600 on credit card. You plan to pay back of $50 a month for this credit card debt.

You just bought a TV for $600 on credit card. You plan to pay back of $50 a month for this credit card debt. The credit card charges you 12% of interest rate on the monthly basis. So how long does it take to pay back your credit card debt?

A. 11.78 month B. 11.43 month C. 12.91 month D. 12.85 month

Solutions

Expert Solution

We are given the following information:

Payment	PMT	50.00
Rate of interest	r	12.00%
Number of years	n	12.85
Monthly compounding	frequency	12.00
Loan amount	PV	600.00

We need to solve the following equation to arrive at the required n

So the correct option is D

So the monthly payment is $50.0006443221335

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

You bought a $1200 TV with your new credit card that charges 23% APR. Your plan is...

You bought a $1200 TV with your new credit card that charges 23% APR. Your plan is to pay off the card in 5 years. How much is your monthly payment? After two years you plan to have better credit and use a card with a lower rate. What will the balance be at this time? If at the two year point, you can then afford to pay $45 per month, how many months will it take you to pay off the...

a) You bought a $1200 TV with your new credit card that charges 23% APR. Your...

a) You bought a $1200 TV with your new credit card that charges 23% APR. Your plan is to pay off the card in 5 years. (8 pt.s) a. How much is your monthly payment? b. After two years you plan to have better credit and use a card with a lower rate. What will the balance be at this time? c. If at the two year point, you can then afford to pay $45 per month, how many months...

Credit Card Debt – How long will it take me to pay off my credit card...

Credit Card Debt – How long will it take me to pay off my credit card balance of $3,750? The credit card company is charging 10% interest. I can afford to pay $150/month, but would prefer to pay $100/month because I want to continue my cable service. Please show me the answer to both scenarios.

You have $12,000 in credit card debt and have finally decided to start to really pay...

You have $12,000 in credit card debt and have finally decided to start to really pay it off. You determine that you’ll be able to make the following monthly payments. The APR on your credit card is 22%. Your first payment is today. How much will you owe after your last payment? Month Payment 1 2000 2 2000 3 1500 4 1500 5 1500 6 1000 7 1000 8 500 9 500 10 500 $842.19 $0.00 $785.60 $1044.68

You owe $1500 on a credit card that charges 2% interest each month. You can pay...

You owe $1500 on a credit card that charges 2% interest each month. You can pay $50 each month with no new charges. What is the equilibrium value? When will the account be paid off? A) Equilibrium value is 2500 and the account will be paid off approximately after 47 months. B) Equilibrium value is 50 and the account will be paid off approximately after 47 months. C) Equilibrium value is 2500 and the account will be paid off approximately...

A revolving line of credit allows you to use credit and pay it back at your...

A revolving line of credit allows you to use credit and pay it back at your own pac as long as you pay a minimum amount each monthpaying interest on the unpaid balance. True False

A credit card company claims that the mean credit card debt for individuals is greater than...

A credit card company claims that the mean credit card debt for individuals is greater than $ 5 comma 300. You want to test this claim. You find that a random sample of 34 cardholders has a mean credit card balance of $ 5 comma 554 and a standard deviation of $ 650. At alpha equals 0.10?, can you support the? claim? Complete parts? (a) through? (e) below. Assume the population is normally distributed

Example 1: A credit card company claims that the mean credit card debt for individuals is...

Example 1: A credit card company claims that the mean credit card debt for individuals is greater than $5,300. You want to test this claim. You find that a random sample of 27 cardholders has a mean credit card balance of $5,560 and a standard deviation of $575. At α = 0.05, can you support the claim? Assume the population is normally distributed. Write out the hypothesis statements below and identify the parameter of interest. Ho: _________________________ Ha: _________________________ Which...

a credit card company claims that the mean credit card debt for individuals is greater than...

a credit card company claims that the mean credit card debt for individuals is greater than 4700.00 you want to test this claim. you find that a random sample of 38 cardholders has a mean credit card balance of 4873.00 and a standard deviation of 575.00 at a=0.05

If you take the maximum length of time to pay off a credit card, at a...

If you take the maximum length of time to pay off a credit card, at a rate of 18.5%, how much interest will you pay in interest on a debt of $2,000?. Based your calculations on a minimum payment of 1/36 or $20, whichever is greater.

Subjects