You charged $1,000 on your credit card for Christmas presents. Your credit card company charges you 16% annual interest, compounded monthly. If you make the minimum payments of $25 per month, how long will it take ( to the nearest month) to pay off your balance?
Rate of interest = 16% p.a.
Rate of interest per month=i=16/12=1.333333%
The solution describes the steps for calculating loan period based upon minimum monthly payment.