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

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

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