Question

If John spend 1000 dollar from his credit card, the interest rate per month is 1% and he will pay fix amount of 100 dollar to settle the credit card payment every month, how many month will John take to settle all his credit card payment?what is the total interest that John have to pay and what is the total amount that john have to pay?

*all the formula for solution is need for coding purposes

Answer 1

Answer 2

To find out how many months it will take John to settle his credit card payment, you can use the following formula for the number of months required:

$�=\frac{-\log (1-(�\cdot �)\mathrm{/}�)}{\log (1+�)}$

Where:

• $�$ is the number of months.

• $�$ is the monthly interest rate (expressed as a decimal). In this case, it's 0.01 since the monthly interest rate is 1%.

• $�$ is the fixed monthly payment (which is $100).

• $�$ is the initial debt (which is $1000).

Let's calculate $�$:

$�=\frac{-\log (1-(0.01\cdot 100)\mathrm{/}1000)}{\log (1+0.01)}$

Now, you can solve for $�$:

$�\approx 13.54$

Since you can't have a fraction of a month, you will need to round up to the nearest whole month. So, John will take 14 months to settle his credit card payment.

Now, to find the total interest paid and the total amount paid:

Total Interest Paid:

You can use the formula for the total interest paid:

$�������������=(�\cdot �)-�$

Where:

• $�$ is the number of months (which is 14).

• $�$ is the fixed monthly payment (which is $100).

• $�$ is the initial debt (which is $1000).

Total Interest = (14 * 100) - 1000 = $1400 - $1000 = $400

So, John will pay a total of $400 in interest.

Total Amount Paid:

The total amount paid is the sum of the initial debt and the total interest paid:

Total Amount Paid = $1000 (initial debt) + $400 (total interest) = $1400

So, the total amount that John has to pay is $1400.