contestada

yuo charged $1,000 on your credit card for Christmas presents. Your credit card company charges you 26% annual interest, compounded monthly. If you make the minimum payments of $25 per month, how long will it take (to the nearest month) to pay off your balance

Respuesta :

Answer:

time = 94 months  =  7 years 10 months

Explanation:

given data

Present value PV = $1,000

Monthly payment PMT = $25

Interest rate r = 26% = [tex]\frac{0.26}{12}[/tex] = 0.021667

solution

we get here time so we apply formula that is

PMT = [tex]\frac{PV(r)}{(1 -(1 +r)^(-t))}[/tex]      ................1

put here value we get

25 = [tex]\frac{1000(0.021667)}{(1 -(1 +0.021667)^(-t))}[/tex]  

take ln both side

- t ln(1.02167)   = ln(0.1332 )

time t =  94 months

time = 7 years 10 months

Otras preguntas