Problem:
Your family vacation was great, but it unfortunately ran a bit over budget. All is not lost. You just received an offer in the mail to transfer your $5,000 balance from your current credit card, which charges an annual rate of 18.7 percent, to a new credit card charging a rate of 9.4 percent. You plan to make payments of $510 at the end the month on this debt.
Required:
How many less payments will you have to make to pay off this debt if you transfer the balance to the new card?
Note: Provide support for your underlying principle.