You owe $10,000 on a credit card with an interest rate of 15%, which is compounded...

You owe $10,000 on a credit card with an interest rate of 15%, which is compounded monthly. If you make payments of $1,000 per month, how many months will it take you to pay off your debt? (Enter the answer to 2 decimal places)

Solutions

Expert Solution

Loan amount = $10,000

Monthly interest rate = 15%/12 = 1.25%

Monthly payment = $1,000

Number of months is calculated using NPER function in excel

Therefore, number of months required to pay off the debt is 10.75 months.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

"You currently owe $2480 on your credit card, which calculates interest based on 18.23% APR, compounded...

"You currently owe $2480 on your credit card, which calculates interest based on 18.23% APR, compounded daily. You make quarterly payments of $724 at the end of every quarter, and you make your first payment exactly one quarter from now. How many quarters until you pay off your credit card debt? Assume 91 days in each quarter. Express your answer as an integer (number of quarters)."

You owe 2000 dollars on your credit card which has an interest rate of 18% per...

You owe 2000 dollars on your credit card which has an interest rate of 18% per year compounded monthly. If you plan to pay it off in 4 years, what are your monthly payments? 2 decimals What are the total payments? Round to nearest whole dollar. How much total interest is paid? Nearest whole dollar. What is the unpaid balance after 1 year? Round to nearest whole dollar.

Suppose you owe $1200 on your credit card. The annual percentage rate (APR) is 18%, compounded...

Suppose you owe $1200 on your credit card. The annual percentage rate (APR) is 18%, compounded monthly. The credit card company says your minimum monthly payment is $21.82. a. If you make only this minimum payment, how long will it take for you to repay the $1200 balance (assuming no more charges are made)? b. If you make the minimum payment plus $10.01 extra each month (for a total of $31.83), how long will it take to repay the $1200...

The annual interest rate on a credit card is 18% with interest compounded monthly. If a...

The annual interest rate on a credit card is 18% with interest compounded monthly. If a payment of $100 is made at the end of each month, how many months will it take to pay off an unpaid balance of $2,583.56 (assuming no additional purchases are made)?

QUESTION 7 Part A: You owe $60,000 on your credit card. The credit card charges interest...

QUESTION 7 Part A: You owe $60,000 on your credit card. The credit card charges interest monthly and has an APR of 18.0%. You want to pay off the debt in 60 months. What is the monthly payment? a. 1,624.5 b. 1,523.6 c. 1,752.6 d. 1,758.9 Part B: You want to buy a house, 5 years from now, and you plan to save $60,000 per year, beginning one year from today. You will make 5 deposits in an account that...

You have a $10,000 balance on your credit card, which has an effective monthly interest rate...

You have a $10,000 balance on your credit card, which has an effective monthly interest rate of 2%. How many months will it take you to pay off the balance by making monthly payments of $600?

You owe $2000 on a credit card that charges 20% interest. You have $2200 in your...

You owe $2000 on a credit card that charges 20% interest. You have $2200 in your savings account that earns 1.69% interest. Your savings account charges $14.50 a month if you keep a balance of less than $1500 a month. Compare the amount of interest for both to decide what you should do about paying the credit card bill. Consider all factors in the decision. Show your for any calculations you may completed.

Simon recently received a credit card with a 15% nominal interest rate. With the card, he...

Simon recently received a credit card with a 15% nominal interest rate. With the card, he purchased an Apple iPhone 7 for $363.75. The minimum payment on the card is only $10 per month. 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 whole number. ______month(s) If Simon makes monthly payments of $35, how...

Jim recently received a credit card with a 15% nominal interest rate. With the card, he...

Jim recently received a credit card with a 15% nominal interest rate. With the card, he purchased a new computer for $2,000.00. The minimum monthly payment on the card is $70 per month. If he makes the minimum monthly payment and makes no other charges, how many months will it take him to pay off the card? 28.57 months 35.57 months 50.25 months 67.20 months 70.57 months

Simon recently received a credit card with an 15% nominal interest rate. With the card, he...

Simon recently received a credit card with an 15% nominal interest rate. With the card, he purchased an Apple iPhone 5 for $320. The minimum payment on the card is only $10 per month. 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) If Simon makes monthly payments of $30, how many...

Subjects