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5.99% APR Revolving Credit. $10,000 Loan. 2% Min Payment. At $200/mo. How Many Months To Pay Off?

Assuming the $200 amount paid monthly on time with no other charges

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    Credit card companies have different methods of computing interest.
    I can answer your question by assuming this is an amortized
    loan with a constant payment of $200. With Credit Cards
    your monthly payment as mention is a percentage of your
    remaining balance. With this method your payments will
    decrease as your balance decreases.

    P = $200 (monthly payment)
    A = $10,000 (loan amount)
    r = APR/12 = 0.0599/12
    abs = the absolute value
    ln = the natural logarithm

    n = ln [ P / (abs(rL - P)) ] / [ln (1 + r)]

    After making your substitutions..n = 57.66

    Therefore it will take you 57.66 months to pay off your credit card balance.
    Your last payment will be less than $200.
    Keep in mind this is for paying a constant amound of $200. This way you
    will pay off your balance earlier, and save in finance charges.

    This is an estimate of how long it will take to pay off your balance, assuming this is an amortized loan. As mentioned earlier Credit Card Companies can have different methods of computing interest. They have to abide by the regulations of the Truth and Lending Act, and have to
    disclose how their interest is calculated. Review the financial terms and conditions of your accounts.
    0 0

    Mathman99 

    answered 10 months ago

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