Concept explainers
Credit Card Debt The APR loan payoff formula can be used to determine how many months it will take to pay off a credit card debt if the minimum monthly payment is made each month. For instance, suppose that you have a credit card bill of $620.50, the minimum payment is $13, and the interest rate is 18% per year. Using a graphing calculator, we can determine the number of months, n, it will take to pay off the debt. Enter the values shown on the Tl-83184 calculator screen below. Move the cursor to N= and press ALPHA ISOLVEI. It will take over 84 months (or approximately 7 years) to pay off the credit card debt, assuming you do not make additional purchases.
a. Find the number of months it will take to pay off a credit card debt of $1283.34 if the minimum payment is $27 and the annual interest rate is 19.6%, Round to the nearest month.
b. How much interest will be paid on the credit card debt in part a?
c. If you have credit card debt, determine how many months it would take to pay off your debt by making the minimum monthly payments. How much interest would you pay? You may want to use a debt payoff calculator, as mentioned in the Math Matters on page 648, to determine the answers.
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Chapter 11 Solutions
Mathematical Excursions (MindTap Course List)
- Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage LearningAlgebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:CengageCollege Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning