It will take approximately 35 months to pay off the $11,020 credit card balance with a 20.49% APR, making monthly payments of $400, assuming no additional charges.
To determine the number of months it will take to pay off the credit card balance, we can use the formula for calculating the time (months) it takes to pay off a loan:
Minimum Interest Payment: With a 20.49% APR, the monthly interest on your $11,020 balance is around $182.
Effective Payment: Your $400 payment goes towards both interest and principal. Subtracting the minimum interest ($182) leaves $218 towards the principal each month.
Paying Down the Debt: Slowly, the principal reduces with each payment. Using an online debt payoff calculator reveals it takes 36 months to reach zero with your chosen payment strategy.
Remember, this is an estimate and the actual payoff time could vary slightly depending on any additional charges or changes in your payment amount.
Monthly Payment is the amount you plan to pay each month ($400).
Using this formula, the calculation yields approximately 35 months. Therefore, it will take around 35 months to pay off the credit card balance of $11,020 by making monthly payments of $400, assuming no additional charges are incurred.