The annual interest rate on a credit card is 14.99​%. If a payment of ​$100.00 is made each​ month, how many months will it take to pay off an unpaid balance of ​$2,546.26​?

Question

The annual interest rate on a credit card is 14.99​%. If a payment of ​$100.00 is made each​ month, how many months will it take to pay off an unpaid balance of ​$2,546.26​? 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

To solve this problem I use Fin Solver of TI-84:

I set:

N = 0

I% = 14.99

PV = 2546.26

PMT = - 100

FV = 0

P/Y = 12

C/Y = 12

When run I get N = 30.84. So time t = 30.84 month