Annual percentage rate


Question:

The annual percentage rate on a Bob's credit card is 18% and his bank uses monthly compounding.

When he used it during school, he used up $1,400 in credit card debt. He does not have access to a cheaper source of financing, and so he decided to pay it all back in $43 equal monthly installments.

His first payment is due 1 month from today.

Question:

How long will it take him to bring his credit card balance to zero? Please provide correct answer.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Annual percentage rate
Reference No:- TGS0875733

Expected delivery within 24 Hours