Number of Annuity Payments Joey realizes that he has charged too much on his credit card and has racked up $4,000 in debt.If he can pay $200 each month and the card charges percent 20 APR (compounded monthly),how long will it take him to pay off the debt?
A)17.40 months
B)20.00 months
C)24.04 months
D)24.53 months

Question

Quizplus · Accepted Answer

Using the formula for the number of payments in an annuity, considering the monthly interest rate (20% APR compounded monthly is approximately 1.6667% per month), it will take approximately 24.53 months to pay off the debt.

Number of Annuity Payments Joey Realizes That He Has Charged