The annual interest rate on a credit card is 13.99​%. If the minimum payment of ​$20 is made each​ month, how many months will it take to pay off an unpaid balance of ​$879.15​?

Question

The annual interest rate on a credit card is 13.99​%. If the minimum payment of ​$20 is made each​ month, how many months will it take to pay off an unpaid balance of ​$879.15​? 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

N=-1/30*LN(1+b/p*(1-(1+apr/365)^30))/LN(1+apr/365)=61.7431.............=62 payments.

The best way is to pay 300/m. Better yet; do it in 1 payment. No interest.

N-payments

LN-/2.71828...........

b-balance

p-payment