I need help with this please Phoebe realizes that she has charged too much on he
ID: 2706612 • Letter: I
Question
I need help with this please
Phoebe realizes that she has charged too much on her credit card and has racked up $5,400 in debt. If she can pay $200 each month and the card charges 18 percent APR (compounded monthly), how long will it take her to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Time to pay off the debt= years
I need help with this please
Phoebe realizes that she has charged too much on her credit card and has racked up $5,400 in debt. If she can pay $200 each month and the card charges 18 percent APR (compounded monthly), how long will it take her to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Time to pay off the debt= years
Explanation / Answer
Hi,
Please find the answer as follows:
Rate = 18/12 = 1.5
PV = 5400
PMT = 200
FV = 0
Nper = ?
Period = Nper(Rate, PMT, PV, FV) = Nper(1.5%,200,-5400,0) = 34.87 months
Year = 34.87/12 = 2.91 Years
Answer is 2.91 Years.
Thanks.