The annual interest rate on a credit card is 12.99​%. If the minimum payment of ​$20 is made each​ month, how many months will it take to pay off an unpaid balance of ​$856.96​?

Question

The annual interest rate on a credit card is 12.99​%. If the minimum payment of ​$20 is made each​ month, how many months will it take to pay off an unpaid balance of ​$856.96​? Assume that no new purchases are made with the credit card.

It will take __________ months to pay off the unpaid balance.

​(Do not round until the final answer. Then round up to the nearest integer as​ needed.)

Answer 1

The formula for credit cards is:

N=-1/30*LN(1+b/p*(1-(1+apr/365)^30))/LN(1+apr/365)=57.696.....or 58 months.

N-months

apr-%; remember to use .1299

b-balance

p-month/pay