if your credit card balance is $1150, and your APR is 18.75%, and your periodic interest rate is 2.15%:
1. how long to pay off?
2. total paid?
To calculate how long it will take to pay off your credit card balance and the total amount you will have paid, you need to consider the monthly payment amount. Without knowing the monthly payment, it's challenging to provide an exact answer. However, I can explain the steps you can follow to calculate these values.
1. Calculate the monthly interest rate:
Divide the annual percentage rate (APR) by the number of months in a year: 18.75% / 12 = 1.5625%.
2. Determine the monthly payment:
To pay off your credit card balance, you need to select a monthly payment amount. This could be as low as the minimum payment indicated on your credit card statement or a higher amount if you want to pay off the debt faster.
3. Calculate the number of months (or payments) required:
To determine how long it will take to pay off your credit card balance, divide the total balance by the monthly payment amount. However, keep in mind that this calculation won't consider the monthly interest charges, so the actual repayment time may be slightly longer.
4. Calculate the total amount paid:
Multiply the monthly payment amount by the number of months it takes to pay off your balance. This will give you the total amount paid to clear your debt. Additionally, you may need to consider the monthly interest charges.
By following these steps, you can determine the time required to pay off your credit card balance and the total amount you will have paid.