Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 4, Problem 23AA
To determine

The number of months it will take to repay the charges on credit card if no interest is paid.

Expert Solution & Answer
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Explanation of Solution

Given Information:

The charges will be $1000

Fixed interest is 15%

Payment on monthly basis can be made of $50

If it is assumed that no interest would be paid, then the number of months (Nper) will be calculated as follows:

  Nper=$1000$50

     =20 months

Therefore, the number of months it will take to repay the amount will be 20 months.

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