Help with Math/Percentages!

Question

Your credit card has an annual percentage rate (APR) of 24% and a minimum payment of $10.00. If you make the minimum payment every month, use the table below to determine how long it will take to pay off your purchase.

Month   Balance    Payment    Remaining Balance    Interest    New Balance
1           $82.84    $10.00         $72.84                      24%        $90.32

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Answer 1

The information presented here is confusing. First, the sample calculation is based on the balance of $82.84 held for one year, but the text states that the APR is 24%, which is 2% per month.

 

If what is meant is 2% per month, then the table would be

82.84      10.00   0.02   1.4568   74.29
74.29      10.00   0.02   1.2859   65.58
65.58      10.00   0.02   1.1116   56.69
56.69      10.00   0.02   0.9338   47.62
47.62      10.00   0.02   0.7525   38.38
38.38      10.00   0.02   0.5676   28.94
28.94      10.00   0.02   0.3789   19.32
19.32      10.00   0.02   0.1865    9.51
  9.51       9.51