Answer: 5.5 months
Step-by-step explanation:
To calculate the number of months it will take to pay off your credit card balance, we can use the formula for the time it takes to pay off a balance with fixed monthly payments:
n = -log(1 - (r * b) / p) / log(1 + r)
where:n is the number of months it will take to pay off the balancer is the monthly interest rate (which is the annual percentage rate divided by 12)b is the balance owedp is the fixed monthly paymentFirst, let's calculate the monthly interest rate r:
r = 0.147 / 12 = 0.01225
Next, we can substitute the values into the formula:
n = -log(1 - (0.01225 * 2264) / 500) / log(1 + 0.01225)
Using a calculator, we can simplify this to:
n = 5.5 months