How many years will it take for you to be debt free ??? You owe $2,000 on your creditcard. The interest rate they offeris 19.6% interest compoundedmonthly. If you can only makethe minimum monthly paymentof $40 per month, how manyyears will it take for you to bedebt-free?

To determine how long it will take to pay off the debt, we can use the formula for the future value…

Answered: You owe $2,000 on your credit card. The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You owe $2,000 on your credit card. The interest rate they offer is 19.6% interest compounded monthly. If you can only make the minimum monthly payment of $40 per month, how many years will it take for you to be debt-free?