Question

Casey bought a new $2500 computer and paid with her credit card. Her interest rate is 13%, and she makes her $75 monthly payment on time. Approximately how many months will it take to pay her credit card off?

Answer 1

To find out how many months it will take Casey to pay off her $2500 credit card with a 13% interest rate, we need to calculate the total interest she will pay and divide it by her $75 monthly payment. After doing the math, it will take approximately 4.33 months for Casey to pay off her credit card.

Step-by-step explanation:

To find out how many months it will take Casey to pay off her credit card, we need to calculate the total amount of interest she will pay and divide it by her monthly payment.

First, let's calculate the total interest Casey will pay. The interest is calculated based on the outstanding balance, and it accumulates over time. Since Casey's interest rate is 13% and her computer costs $2500, the total interest can be calculated using the formula:

total interest = outstanding balance * interest rate.

Once the total interest is calculated, we can divide it by Casey's monthly payment to find out how many months it will take to pay off her credit card.

Let me do the math for you:

1. Calculating the total interest: $2500 * 0.13 = $325
2. Calculating the number of months: $325 / $75 = 4.333...

So, it will take approximately 4.33 months for Casey to pay off her credit card.