# Calculating the monthly payment

Not what you're looking for?

Fred and Wilma have a credit card debt of $20,000 that has an 15% APR interest rate compounded monthly.

a. What payments would they have to make to pay this off in 5 years assuming that no additional purchases are made with this card?

b. What happens if they would make only a $200 a month payment? Explain why?

##### Purchase this Solution

##### Solution Summary

This solution describes the steps to calculate monthly payment with the help of functions in MS Excel.

##### Solution Preview

a) What payments would they have to make to pay this off in 5 years assuming that no additional purchases are made with this card?

PV of loan=PV=20000

Rate of interest=RATE=15%/12=1.25% per month

Number of periods=NPER=60 ...

###### Education

- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India

###### Recent Feedback

- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.