Question

Paul has budgeted to pay $80 each month on his credit card which has a $2,818 balance and has an annual finance rate of 15.9%. How many years will it take him to pay off the card?

Answer 1

time = 4 year

Step-by-step explanation:

given data

pay each month = $80

Credit card balance = $2,818

annual finance rate = 15.9%

solution

we get here time period that is express by as

Monthly payment =
`((P * (r)/(12)) * (1+ (r)/(12))^t )/((1+(r)/(12))^t-1)` ............1

put here value and we get

80 =
`((2818 * (0.159)/(12)) * (1+ (0.159)/(12))^t )/((1+(0.159)/(12))^t-1)`

solve it we get time t

t = 48 month

time = 4 year