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The annual interest rate on a credit card is 14.99%. If a payment of $300.00 is...

The annual interest rate on a credit card is 14.99%. If a payment of $300.00 is made each month,how many months will it take to pay off an unpaid balance of $2,508.59? Assume that no new purchases are made with the credit card

Solutions

Expert Solution

Monthly interest rate, r = 14.99%/12 = 1.2491666667%

I/Y = 1.2491666667

PMT = -300

PV = 2508.59

FV = 0

CPT N

N = 8.88675071 months

It takes almost 9 months to pay off the balance

jeff jeffy answered 2 years ago
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