Question

Assume that you have a balance of $5300 on your Discover credit card and that you make no more charges. Assume that Discover charges 21% APR and that each month you make only the minimum payment of 2% of the balance.

Find how many months it will take to bring the remaining balance down to $2500. (Round your answer to the nearest whole number.)

Answer is NOT 301

Answer 1

APR = 21% APR

so, Monthly it would be 21/1200 = 0.0175

Below is the table for APR - and from below table answer will be 301 only.

Month	Previous Balance	Minimum payment	Finance Charge (APR)	New Balance
1	5,300.00	106.00	92.75	5286.75
2	5,286.75	105.74	92.52	5273.53
3	5,273.53	105.47	92.29	5260.35
4	5,260.35	105.21	92.06	5247.20
5	5,247.20	104.94	91.83	5234.08
6	5,234.08	104.68	91.60	5221.00
7	5,221.00	104.42	91.37	5207.94
8	5,207.94	104.16	91.14	5194.92
9	5,194.92	103.90	90.91	5181.94
10	5,181.94	103.64	90.68	5168.98
11	5,168.98	103.38	90.46	5156.06
12	5,156.06	103.12	90.23	5143.17
13	5,143.17	102.86	90.01	5130.31
14	5,130.31	102.61	89.78	5117.48
15	5,117.48	102.35	89.56	5104.69
16	5,104.69	102.09	89.33	5091.93
17	5,091.93	101.84	89.11	5079.20
18	5,079.20	101.58	88.89	5066.50
19	5,066.50	101.33	88.66	5053.83
20	5,053.83	101.08	88.44	5041.20
21	5,041.20	100.82	88.22	5028.60
22	5,028.60	100.57	88.00	5016.03
23	5,016.03	100.32	87.78	5003.49
24	5,003.49	100.07	87.56	4990.98
25	4,990.98	99.82	87.34	4978.50
26	4,978.50	99.57	87.12	4966.05
27	4,966.05	99.32	86.91	4953.64
28	4,953.64	99.07	86.69	4941.25
29	4,941.25	98.83	86.47	4928.90
30	4,928.90	98.58	86.26	4916.58
31	4,916.58	98.33	86.04	4904.29
32	4,904.29	98.09	85.83	4892.03
33	4,892.03	97.84	85.61	4879.80
34	4,879.80	97.60	85.40	4867.60
35	4,867.60	97.35	85.18	4855.43
36	4,855.43	97.11	84.97	4843.29
37	4,843.29	96.87	84.76	4831.18
38	4,831.18	96.62	84.55	4819.10
39	4,819.10	96.38	84.33	4807.06
40	4,807.06	96.14	84.12	4795.04
41	4,795.04	95.90	83.91	4783.05
42	4,783.05	95.66	83.70	4771.09
43	4,771.09	95.42	83.49	4759.16
44	4,759.16	95.18	83.29	4747.27
45	4,747.27	94.95	83.08	4735.40
46	4,735.40	94.71	82.87	4723.56
47	4,723.56	94.47	82.66	4711.75
48	4,711.75	94.24	82.46	4699.97
49	4,699.97	94.00	82.25	4688.22
50	4,688.22	93.76	82.04	4676.50
51	4,676.50	93.53	81.84	4664.81
52	4,664.81	93.30	81.63	4653.15
53	4,653.15	93.06	81.43	4641.52
54	4,641.52	92.83	81.23	4629.91
55	4,629.91	92.60	81.02	4618.34
56	4,618.34	92.37	80.82	4606.79
57	4,606.79	92.14	80.62	4595.27
58	4,595.27	91.91	80.42	4583.79
59	4,583.79	91.68	80.22	4572.33
60	4,572.33	91.45	80.02	4560.90
61	4,560.90	91.22	79.82	4549.49
62	4,549.49	90.99	79.62	4538.12
63	4,538.12	90.76	79.42	4526.77
64	4,526.77	90.54	79.22	4515.46
65	4,515.46	90.31	79.02	4504.17
66	4,504.17	90.08	78.82	4492.91
67	4,492.91	89.86	78.63	4481.68
68	4,481.68	89.63	78.43	4470.47
69	4,470.47	89.41	78.23	4459.30
70	4,459.30	89.19	78.04	4448.15
71	4,448.15	88.96	77.84	4437.03
72	4,437.03	88.74	77.65	4425.93
73	4,425.93	88.52	77.45	4414.87
74	4,414.87	88.30	77.26	4403.83
75	4,403.83	88.08	77.07	4392.82
76	4,392.82	87.86	76.87	4381.84
77	4,381.84	87.64	76.68	4370.89
78	4,370.89	87.42	76.49	4359.96
79	4,359.96	87.20	76.30	4349.06
80	4,349.06	86.98	76.11	4338.19
81	4,338.19	86.76	75.92	4327.34
82	4,327.34	86.55	75.73	4316.52
83	4,316.52	86.33	75.54	4305.73
84	4,305.73	86.11	75.35	4294.97
85	4,294.97	85.90	75.16	4284.23
86	4,284.23	85.68	74.97	4273.52
87	4,273.52	85.47	74.79	4262.84
88	4,262.84	85.26	74.60	4252.18
89	4,252.18	85.04	74.41	4241.55
90	4,241.55	84.83	74.23	4230.94
91	4,230.94	84.62	74.04	4220.37
92	4,220.37	84.41	73.86	4209.82
93	4,209.82	84.20	73.67	4199.29
94	4,199.29	83.99	73.49	4188.79
95	4,188.79	83.78	73.30	4178.32
96	4,178.32	83.57	73.12	4167.88
97	4,167.88	83.36	72.94	4157.46
98	4,157.46	83.15	72.76	4147.06
99	4,147.06	82.94	72.57	4136.69
100	4,136.69	82.73	72.39	4126.35
101	4,126.35	82.53	72.21	4116.04
102	4,116.04	82.32	72.03	4105.75
103	4,105.75	82.11	71.85	4095.48
104	4,095.48	81.91	71.67	4085.24
105	4,085.24	81.70	71.49	4075.03
106	4,075.03	81.50	71.31	4064.84
107	4,064.84	81.30	71.13	4054.68
108	4,054.68	81.09	70.96	4044.54
109	4,044.54	80.89	70.78	4034.43
110	4,034.43	80.69	70.60	4024.35
111	4,024.35	80.49	70.43	4014.29
112	4,014.29	80.29	70.25	4004.25
113	4,004.25	80.08	70.07	3994.24
114	3,994.24	79.88	69.90	3984.25
115	3,984.25	79.69	69.72	3974.29
116	3,974.29	79.49	69.55	3964.36
117	3,964.36	79.29	69.38	3954.45
118	3,954.45	79.09	69.20	3944.56
119	3,944.56	78.89	69.03	3934.70
120	3,934.70	78.69	68.86	3924.86
121	3,924.86	78.50	68.69	3915.05
122	3,915.05	78.30	68.51	3905.26
123	3,905.26	78.11	68.34	3895.50
124	3,895.50	77.91	68.17	3885.76
125	3,885.76	77.72	68.00	3876.05
126	3,876.05	77.52	67.83	3866.36
127	3,866.36	77.33	67.66	3856.69
128	3,856.69	77.13	67.49	3847.05
129	3,847.05	76.94	67.32	3837.43
130	3,837.43	76.75	67.16	3827.84
131	3,827.84	76.56	66.99	3818.27
132	3,818.27	76.37	66.82	3808.72
133	3,808.72	76.17	66.65	3799.20
134	3,799.20	75.98	66.49	3789.70
135	3,789.70	75.79	66.32	3780.23
136	3,780.23	75.60	66.15	3770.78
137	3,770.78	75.42	65.99	3761.35
138	3,761.35	75.23	65.82	3751.95
139	3,751.95	75.04	65.66	3742.57
140	3,742.57	74.85	65.49	3733.21
141	3,733.21	74.66	65.33	3723.88
142	3,723.88	74.48	65.17	3714.57
143	3,714.57	74.29	65.00	3705.28
144	3,705.28	74.11	64.84	3696.02
145	3,696.02	73.92	64.68	3686.78
146	3,686.78	73.74	64.52	3677.56
147	3,677.56	73.55	64.36	3668.37
148	3,668.37	73.37	64.20	3659.20
149	3,659.20	73.18	64.04	3650.05
150	3,650.05	73.00	63.88	3640.92
151	3,640.92	72.82	63.72	3631.82
152	3,631.82	72.64	63.56	3622.74
153	3,622.74	72.45	63.40	3613.68
154	3,613.68	72.27	63.24	3604.65
155	3,604.65	72.09	63.08	3595.64
156	3,595.64	71.91	62.92	3586.65
157	3,586.65	71.73	62.77	3577.68
158	3,577.68	71.55	62.61	3568.74
159	3,568.74	71.37	62.45	3559.82
160	3,559.82	71.20	62.30	3550.92
161	3,550.92	71.02	62.14	3542.04
162	3,542.04	70.84	61.99	3533.18
163	3,533.18	70.66	61.83	3524.35
164	3,524.35	70.49	61.68	3515.54
165	3,515.54	70.31	61.52	3506.75
166	3,506.75	70.14	61.37	3497.99
167	3,497.99	69.96	61.21	3489.24
168	3,489.24	69.78	61.06	3480.52
169	3,480.52	69.61	60.91	3471.82
170	3,471.82	69.44	60.76	3463.14
171	3,463.14	69.26	60.60	3454.48
172	3,454.48	69.09	60.45	3445.84
173	3,445.84	68.92	60.30	3437.23
174	3,437.23	68.74	60.15	3428.63
175	3,428.63	68.57	60.00	3420.06
176	3,420.06	68.40	59.85	3411.51
177	3,411.51	68.23	59.70	3402.98
178	3,402.98	68.06	59.55	3394.48
179	3,394.48	67.89	59.40	3385.99
180	3,385.99	67.72	59.25	3377.53
181	3,377.53	67.55	59.11	3369.08
182	3,369.08	67.38	58.96	3360.66
183	3,360.66	67.21	58.81	3352.26
184	3,352.26	67.05	58.66	3343.88
185	3,343.88	66.88	58.52	3335.52
186	3,335.52	66.71	58.37	3327.18
187	3,327.18	66.54	58.23	3318.86
188	3,318.86	66.38	58.08	3310.56
189	3,310.56	66.21	57.93	3302.29
190	3,302.29	66.05	57.79	3294.03
191	3,294.03	65.88	57.65	3285.80
192	3,285.80	65.72	57.50	3277.58
193	3,277.58	65.55	57.36	3269.39
194	3,269.39	65.39	57.21	3261.21
195	3,261.21	65.22	57.07	3253.06
196	3,253.06	65.06	56.93	3244.93
197	3,244.93	64.90	56.79	3236.82
198	3,236.82	64.74	56.64	3228.72
199	3,228.72	64.57	56.50	3220.65
200	3,220.65	64.41	56.36	3212.60
201	3,212.60	64.25	56.22	3204.57
202	3,204.57	64.09	56.08	3196.56
203	3,196.56	63.93	55.94	3188.57
204	3,188.57	63.77	55.80	3180.59
205	3,180.59	63.61	55.66	3172.64
206	3,172.64	63.45	55.52	3164.71
207	3,164.71	63.29	55.38	3156.80
208	3,156.80	63.14	55.24	3148.91
209	3,148.91	62.98	55.11	3141.04
210	3,141.04	62.82	54.97	3133.18
211	3,133.18	62.66	54.83	3125.35
212	3,125.35	62.51	54.69	3117.54
213	3,117.54	62.35	54.56	3109.74
214	3,109.74	62.19	54.42	3101.97
215	3,101.97	62.04	54.28	3094.21
216	3,094.21	61.88	54.15	3086.48
217	3,086.48	61.73	54.01	3078.76
218	3,078.76	61.58	53.88	3071.07
219	3,071.07	61.42	53.74	3063.39
220	3,063.39	61.27	53.61	3055.73
221	3,055.73	61.11	53.48	3048.09
222	3,048.09	60.96	53.34	3040.47
223	3,040.47	60.81	53.21	3032.87
224	3,032.87	60.66	53.08	3025.29
225	3,025.29	60.51	52.94	3017.72
226	3,017.72	60.35	52.81	3010.18
227	3,010.18	60.20	52.68	3002.65
228	3,002.65	60.05	52.55	2995.15
229	2,995.15	59.90	52.42	2987.66
230	2,987.66	59.75	52.28	2980.19
231	2,980.19	59.60	52.15	2972.74
232	2,972.74	59.45	52.02	2965.31
233	2,965.31	59.31	51.89	2957.89
234	2,957.89	59.16	51.76	2950.50
235	2,950.50	59.01	51.63	2943.12
236	2,943.12	58.86	51.50	2935.77
237	2,935.77	58.72	51.38	2928.43
238	2,928.43	58.57	51.25	2921.10
239	2,921.10	58.42	51.12	2913.80
240	2,913.80	58.28	50.99	2906.52
241	2,906.52	58.13	50.86	2899.25
242	2,899.25	57.99	50.74	2892.00
243	2,892.00	57.84	50.61	2884.77
244	2,884.77	57.70	50.48	2877.56
245	2,877.56	57.55	50.36	2870.37
246	2,870.37	57.41	50.23	2863.19
247	2,863.19	57.26	50.11	2856.03
248	2,856.03	57.12	49.98	2848.89
249	2,848.89	56.98	49.86	2841.77
250	2,841.77	56.84	49.73	2834.67
251	2,834.67	56.69	49.61	2827.58
252	2,827.58	56.55	49.48	2820.51
253	2,820.51	56.41	49.36	2813.46
254	2,813.46	56.27	49.24	2806.43
255	2,806.43	56.13	49.11	2799.41
256	2,799.41	55.99	48.99	2792.41
257	2,792.41	55.85	48.87	2785.43
258	2,785.43	55.71	48.75	2778.47
259	2,778.47	55.57	48.62	2771.52
260	2,771.52	55.43	48.50	2764.59
261	2,764.59	55.29	48.38	2757.68
262	2,757.68	55.15	48.26	2750.79
263	2,750.79	55.02	48.14	2743.91
264	2,743.91	54.88	48.02	2737.05
265	2,737.05	54.74	47.90	2730.21
266	2,730.21	54.60	47.78	2723.38
267	2,723.38	54.47	47.66	2716.57
268	2,716.57	54.33	47.54	2709.78
269	2,709.78	54.20	47.42	2703.01
270	2,703.01	54.06	47.30	2696.25
271	2,696.25	53.92	47.18	2689.51
272	2,689.51	53.79	47.07	2682.78
273	2,682.78	53.66	46.95	2676.08
274	2,676.08	53.52	46.83	2669.39
275	2,669.39	53.39	46.71	2662.71
276	2,662.71	53.25	46.60	2656.06
277	2,656.06	53.12	46.48	2649.42
278	2,649.42	52.99	46.36	2642.79
279	2,642.79	52.86	46.25	2636.19
280	2,636.19	52.72	46.13	2629.60
281	2,629.60	52.59	46.02	2623.02
282	2,623.02	52.46	45.90	2616.46
283	2,616.46	52.33	45.79	2609.92
284	2,609.92	52.20	45.67	2603.40
285	2,603.40	52.07	45.56	2596.89
286	2,596.89	51.94	45.45	2590.40
287	2,590.40	51.81	45.33	2583.92
288	2,583.92	51.68	45.22	2577.46
289	2,577.46	51.55	45.11	2571.02
290	2,571.02	51.42	44.99	2564.59
291	2,564.59	51.29	44.88	2558.18
292	2,558.18	51.16	44.77	2551.78
293	2,551.78	51.04	44.66	2545.40
294	2,545.40	50.91	44.54	2539.04
295	2,539.04	50.78	44.43	2532.69
296	2,532.69	50.65	44.32	2526.36
297	2,526.36	50.53	44.21	2520.05
298	2,520.05	50.40	44.10	2513.75
299	2,513.75	50.27	43.99	2507.46
300	2,507.46	50.15	43.88	2501.19
301	2,501.19	50.02	43.77	2494.94