Respuesta :
you would pay 500 for 4 months and then you would pay 264.96 in the last month so your answer would be 5
Answer:
5 months
Step-by-step explanation:
Since, time-to-pay off formula for a credit card is,
[tex]n=\frac{log(\frac{M}{M-Pr})}{log(1+r)}[/tex]
Where, P is owing amount,
r is rate per period,
M is payment per period,
Here, P = $ 2,264.96,
M = $ 500.00 per month
APR = 14.7 % = 0.147 ⇒ r = [tex]\frac{0.147}{12}[/tex]
Hence, the number of months does it take to pay off the balance,
[tex]n=\frac{log(\frac{500.00}{500.00-2264.96\times \frac{0.147}{12}})}{log(1+\frac{0.147}{12})}[/tex]
[tex]=4.68894564931\approx 5[/tex]
Therefore, It will take approx 5 months to pay off the balance.
