Phoebe realizes that she has charged too much on her credit card and has racked up $5,500 in debt. If she can pay $250 each month and the card charges 12 percent APR (compounded monthly), how long will it take her to pay off the debt? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Answer is complete but not entirely correct. Time to pay off the debt 27.95 months

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Phoebe realizes that she has charged too much on her credit card and has racked up $5,500 in debt. If she can pay $250 each
month and the card charges 12 percent APR (compounded monthly), how long will it take her to pay off the debt?
Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
Answer is complete but not entirely correct.
27.95 months
Time to pay off the debt
Transcribed Image Text:Phoebe realizes that she has charged too much on her credit card and has racked up $5,500 in debt. If she can pay $250 each month and the card charges 12 percent APR (compounded monthly), how long will it take her to pay off the debt? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Answer is complete but not entirely correct. 27.95 months Time to pay off the debt
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