2. You charged $ 1,000 on your credit card for Christmas presents. Your credit card company charges you 16 % annual interest, compounded monthly. If you make the minimum payments of $25 per month, how long will it take [to the nearest month] top pay off your balance?

Answer 1

1000 = 25[1 - 1.0133333^-n]/.0133333
.5333333 = 1 - 1.0133333^-n
.4666667 = 1.0133333^-n
-n = log .46666667/log1.0133333
n = 57.54 payments

there will be 57 payments of $25 plus a partial payment less than $25 on the 58th month