Chapter 4, Problem 23AA

To determine

The number of months it will take to repay the charges on credit card if no interest is paid.

Explanation of Solution

Given Information:

The charges will be $1000

Fixed interest is 15%

Payment on monthly basis can be made of $50

If it is assumed that no interest would be paid, then the number of months (Nper) will be calculated as follows:

  $\begin{array}{c}\text{Nper}=\frac{\$1000}{\$50}\end{array}$

     $\begin{array}{c}=20\text{ months}\end{array}$

Therefore, the number of months it will take to repay the amount will be 20 months.