Question

The annual interest rate on a credit card is 14.99%. If the minimum payment of $30 is made each​ month, how many months will it take to pay off an unpaid balance of $807.91?

Answer 1

30.967 months

Step-by-step explanation:

We can assume the number of months in which the credit card will be paid off to be x.

Since we are given that the unpaid balance on the credit card is $807.91 with annual interest of 14.99%

We can therefore calculate the amount of interest to be = 14.99/100 × $807.91

= $121.11

Then the total amount to be paid is

= $807.91 + $121.1

= $929.01

Also, since the minimum payment is $30 per month, x would therefore be;

= 929.01/30

= 30.967

It therefore means that the balance in the credit card will be paid off in 30.967 months.