The amount of credit card debt is $5,270.00 with an average APR of 15.53%. Considering the minimum monthly payment of $120.00 determine the interest. How long will it take to pay off if only making minimum payments? If graphs or charts are available please include.© BrainMass Inc. brainmass.com April 4, 2020, 12:31 am ad1c9bdddf
This would be an annuity calculation.
Since you are using an APR (Annual percentage rate) of 15.53% (ia = 0.1553) it would mean that the monthly interest rate is 1.21% (im = 0.0121).
You can find this by finding the (1/12) root of (1+0.1553) which is the annual increase of your loan. i.e. (1.1553)1/12 = 1.0121.
Please note that ...
A word file with full step by step explanation of the solution. An excel file is also attached showing the loan amortization for the whole repayment period.