Question

You owe ​$3629 on your credit card which has a 17.2​% APR. ​(a) How much interest do you get charged this month on your balance of ​$3629​? ​(b) You make a payment of ​$850. What is your new balance for the next​ month? ​(c) How many total months will it take you to pay off the debt if you continue to make ​$850 payments each month​ (the last month you would pay just what you​ owe)? ​(a) The interest is ​$ _______. ​(Round to the nearest cent as​ needed.) ​(b) The new balance for the next month is ​$ _______. ​(Round to the nearest cent as​ needed.) ​(c) It would take _____ payments to pay off the debt.

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Answer #1

It will take 5 months to pay off the balance. The total interest is $144.05 and the next month debt value is 2831.01567

Month Debt Value Payment Interest Payment Value excludes Int Balance of Debt
1 3629 850               52 797.9843333 2831.016
2 2831.01567 850               41 809.4221088 2021.594
3 2021.59356 850               29 821.0238257 1200.57
4 1200.56973 850               17 832.7918338 367.7779
5 367.777898 373                 5 367.7778984 0
Total 3773.049      144.05             3,629.00

A B с D E F Month Debt Value Payment Interest Debt Value exclude Int Balance of Debt 1 2 1 =+C2-D2 3629 =+F2 =+F3 =+B2-E2 =+B

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