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)

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

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