Question

Like many college students, Diana applied for and got a credit card that has an annual percentage rate (APR) of 12%. The first thing she did was buy a new HD Television for $300. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $10. Assume Diana makes her payment when she sees her statement at the end of each month. If Diana doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the HD Television

Answer 1

It would take her 36 months to completely pay off the HD Television

Step-by-step explanation:

FV = 0

PV = ($300)

PMT = $10

rate per month = 12% ÷ 12 = 1%

Using NPER function in Microsoft Excel

No. of months = 36 months