Results 1 to 2 of 2

Math Help - [Interest]

  1. #1
    Newbie
    Joined
    Nov 2009
    Posts
    3

    [Interest]

    Hi again!

    Bob's credit card balance is $2000. Credit company charges 24% interest compounded monthly.

    1) Amortize monthly payments to pay off in 3 years
    Here's the equation I used:

    2000(1 + .24/12)^36 = X [(1 + .24/12)^36 - 1] / (.24/12) = $78.47

    2) If Bob only pays $25 monthly minimum, what will his debt be in 3 years?
    No ideas........
    Last edited by CountNumberla; November 21st 2009 at 05:41 PM.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,100
    Thanks
    67
    Quote Originally Posted by CountNumberla View Post
    Bob's credit card balance is $2000. Credit company charges 24% interest compounded monthly.
    1) Amortize monthly payments to pay off in 3 years
    Here's the equation I used:
    2000(1 + .24/12)^36 = X [(1 + .24/12)^36 - 1] / (.24/12) = $78.47

    2) If Bob only pays $25 monthly minimum, what will his debt be in 3 years?
    No ideas........
    1) correct
    2) you sure $25 is minimum? Interest 1st month = $40.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Calculate interest rate based on interest in parcels
    Posted in the Business Math Forum
    Replies: 1
    Last Post: February 17th 2011, 09:38 PM
  2. Compound interest at changing interest rates
    Posted in the Business Math Forum
    Replies: 2
    Last Post: October 21st 2010, 04:55 AM
  3. Interest
    Posted in the Calculus Forum
    Replies: 0
    Last Post: December 1st 2008, 07:56 PM
  4. interest
    Posted in the Business Math Forum
    Replies: 1
    Last Post: May 14th 2008, 09:40 AM
  5. Replies: 0
    Last Post: March 18th 2007, 01:31 PM

/mathhelpforum @mathhelpforum