Question

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, and what is the total amount paid including interest?

Answer 1

Answer:

You have a credit card with a balance of $1367.90 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, and what is the total amount paid ... monthsOpening balanceInterest paidPrincipleMonthly paymentbalance 11367.90

Step-by-step explanation:

Answer 2

It will take 4 months to pay loan and total amount paid including interest is $1392.63.

Given:

Credit card balance is $ 1,367.90 at a 9.5 % apr. $400 is paid every month.

To find:

Number of months required to pay off loan and total amount paid with interest.

Solution:

During 1st month, amount paid = $400-\frac{0.095}{12} * 1367.5$ = 389.17

                              balance left = 1367.90 - 389.17 = 978.73

During 2nd month, amount paid = $400-\frac{0.095}{12} * 987.73$ = 392.25

                                balance left = 978.73 - 392.25 = 586.48

During 3rd month, amount paid = $400-\frac{0.095}{12} * 586.48$ = 395.36

                                balance left = 586.48 - 395.36 = 191.12

During 4th month, amount paid = $400-\frac{0.095}{12} * 191.12$ = 398.49

                                balance left = 191.12 - 398.49 = -207.37

Hence we can say that it takes 4 months to pay off the loan.

Total amount paid = (4 x 400) - 207.31 = 1392.63

Therefore it will take 4 months to pay loan and total amount paid including interest is $1392.63.

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