Question

PLEASE HELP WITH THE STEPS

The annual interest rate on a credit card is 15.30% cm. If a payment of
$300.00 is made each month, how many months will it take to pay off an
unpaid balance of $2,590.67? (Round to 1 decimal place)
Assume that no new purchases are made with the credit card.

The number of months is _______

Answer 1

It will take 10 months to pay off the unpaid balance.

Explanation:

Given that the annual interest rate on a credit card is 15.30%, if a payment of $ 300.00 is made each month, to determine how many months will it take to pay off an unpaid balance of $ 2,590.67, the following calculation must be performed:

(2,590.67 x 1.1530) / 300 = X

2,987.04 / 300 = X

9.95 = X

Therefore, it will take 10 months to pay off the unpaid balance.