sieramist97
Answered



if who ever answers this could maybe help me with more that'd be great! You have a credit card with a balance of $1,367.90 at a 9.5% APR. You pay $400.00 each month on the due date until the card is paid off. How many months does it take to pay off the card?




3 months



5 months



4 months



6 months

Verified Answer :

chul

Ignore all the extra stuff.

You know:

You're paying $400 a month.
You need to pay off: $1,367.90

400 3 = $1200 Incorrect answer.

The most logical answer I see is 4 months.

400*4 = $1600

All the other months you aren't paying anymore due to after the 4th month the balance that is due is paid off.

Extra math:
3300 = $1200
4*400 = $1600 Minimum Amount
5*400 = $2000
6*400 = $2400

Your Answer:

4 months

Answer:

total month taken to repay the due amount is 4 month

Step-by-step explanation:

Given data:

credit account $1367.90

Rate of interest = 9.5%

For each month = 9.5/12 % = 0.00791667/mo.

DUE amount for different months are

At the end of 1 month you owe


1367.90 × 1.00791667 = 1378.73


paying  $400 on every month then remaining amount is $978.73


At the end of second month due amount is  


978.73 × 1.00791667 = $986.48

paying  $400 on every month then remaining amount is $586.48



At the end of  3rd month due amount is


586.48  ×  1.00791667 = 591.12

paying  $400 on every month then remaining amount is $191.12



At the end of the 4th month due amount is


191.12  ×  1.00791667 = 192.63

hence,  total amount has paid.

therefore total month taken to repay the due amount is 4 month

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