Answer:
Explanation:
To determine how long it will take to pay off a debt, you need to know the interest rate and the amount of each debt. You also need to specify the monthly payment or a regular payment schedule.
I'll assume you are making regular monthly payments to pay off these debts, and I'll calculate the time it takes to pay off each $1000 debt at the given interest rates.
1. $1000 at 6.9%:
If you are making regular monthly payments, you would typically use an amortization schedule to calculate the exact time to pay off the debt. However, you can use a general formula for the time it takes to pay off a fixed-rate loan to get a rough estimate. The formula is:
Time (in months) = -(log(1 - r * P / A) / log(1 + r))
Where:
r is the monthly interest rate (6.9% annual interest rate / 12 months = 0.575% or 0.00575 as a decimal).
P is the principal amount ($1000).
A is the monthly payment (which you need to determine).
If you choose a monthly payment, you can calculate the time it takes to pay off the debt.
2. $1000 at 10%:
You can use the same formula as above, substituting the interest rate (10% annual interest rate / 12 months = 0.8333% or 0.008333 as a decimal).
3. $1000 at 14%:
Use the formula with the interest rate (14% annual interest rate / 12 months = 1.1667% or 0.011667 as a decimal).
4. $1000 at 18%:
Apply the formula using the interest rate (18% annual interest rate / 12 months = 1.5% or 0.015 as a decimal).
You would need to specify the monthly payment (A) in each case to calculate the exact time it takes to pay off each debt. The higher the monthly payment, the quicker you'll pay off the debt.