Question

You have recently charged 1,000 on your credit card. You can only afford to make the...

You have recently charged 1,000 on your credit card. You can only afford to make the minimum payment of $20 per month. The interest rate on the credit card is 1.5%per month. How long will you need to pay off the $1000?

A) 2.25years

B) 5.00 years

C) 7.75 years

I know the answer is C but I don't know how to calculate it. I want the step of this question.

Homework Answers

Answer #1

Number of years = 7.76 years(very close to 7.75 years). The formulae as per excel is given below . Pl refer the same for calculations.

Answer is C) 7.75

The manual formula is a complicated one. Hence used excel to solve the problem.

Formulae

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