math could anyone help me plz?:[

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you have a $5841 credit card debt, and you plan to pay it off through monthly payments of $71. if you are being charged 14% interest per year, how long will it take you to repay your debt?

  • math could anyone help me plz?:[ -

    Ouch!
    You better increase that payment.

    i = .14/12 = .0116667
    let the time be n months

    5841 = 71 (1 - 1.0116667^-n)/.0116667
    68.145 =71(1 - 1.0116667^-n)
    .9597887 = 1 - 1.0116667^-n
    1.0116667^-n = .040211267
    -n = log .040211267 / log 1.0116667 = 277 months
    or 23 years.

    Keep in mind that the interest the first month would be
    5841(.0116667) or $68.14
    so if you are only paying $71, you are paying off less than $3 off per month at the start.
    So in the first year of paying 71 x 12 or $852 in payments, you would have reduced your entire debt by only about $36

    depressing , isn't it ????

  • math could anyone help me plz?:[ -

    wow! sure is. thanks so much sir! :]

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