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tensa zangetsu [6.8K]
3 years ago
7

BRAINLEIST!!!! You have a credit card with a balance of $754.43 at a 13.6% APR. You have $300.00 available each month to save or

pay down your debts.
a. How many months will it take to pay off the credit card if you only put half of the available money toward the credit card each month and make the payments at the beginning of the month?

b. How many months will it take to pay off the credit card if you put all of the available money toward the credit card each month and make the payments at the beginning of the month?
Mathematics
1 answer:
Alex3 years ago
6 0
We are given
P = $754.43
r = 13.6% annual

for a.
A = 150
for b.
A = 300

First, change the interest into effective monthly
i = (1 + 0.136/12)^12 - 1
Solve for i

Next, use the general formula
A = P i ( 1 + i)^n / (1 + 1)^n - 1
Subsitute P, i, and A for a and b.
Then, solve for n for a and b.
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