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20 July, 12:27

Joey realizes that he has charged too much on his credit card and has racked up $4,000 in debt. If he can pay $125 each month and the card charges 18 percent APR (compounded monthly), how long will it take him to pay off the debt

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  1. 20 July, 15:57
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    it take him 43.92 months to pay off the debt

    Explanation:

    Use financial calculator to find the number of months to pay off the debt

    PV = - 4000 is the value of credit card debt in present value

    FV = 0 as loan is zero at the end of the period

    PMT = 125 per month payment

    1 / Y = 18% / 12 = 1.5% per month interest rate

    Click CPT

    Click N = 43.92 months
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Home » Business » Joey realizes that he has charged too much on his credit card and has racked up $4,000 in debt. If he can pay $125 each month and the card charges 18 percent APR (compounded monthly), how long will it take him to pay off the debt
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