Question

​Lisa's credit card balance this month is​ $969.16. Her APR​ (annual percentage​ rate) is 15.24​ %. The minimum payment due is​ $20.00. If she pays only the minimum each month and does not add any more​ charges, how long will it take her to pay off the entire​ balance?

Answer 1

Answer:

It will take 50 months to complete the payment on his entire balance

Explanation:

We have to solve for n in an annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV$  

C  $20.00  

time n

rate (0.1524 / 12 months per year) 0.00127

PV $969.1600  

$20 \times \frac{1-(1+0.00127)^{-n} }{0.00127} = 969.16$  

$(1+0.00127)^{-n}= 1-\frac{969.16\times0.00127}{20}$  

$(1+0.00127)^{-n}= 0.93845834$

Now, we use logarithmics properties to get the answer:

[tex]-n= \frac{log0.93845834}{log(1+0.00127)  

n = 50.044991