Question

I have $3,000 in credit card debt. If I can pay $150.00 a month, how long will it take to pay it off? My current interest rate is 18%. Remember to include your inputs and round 2 decimal points like we did in module 2.

Answer 1

2 years

Step-by-step explanation:

Rate = rate per period = 18%/12 = 1.5%

PV = 3,000

PMT = 150

Number of a payment period = NPER(Rate, PMT, -PV, FV)

Number of a payment period = NPER(18%/12, 150, -3000)

Number of a payment period = 23.96 months

Time to payoff loan = 23.96/12

Time to payoff loan = 1.99667

Time to payoff loan = 2 years