The Bennetts spend $10,000.00 $ 10,000.00 on a home improvement project. They make the purchase with a credit card that has a 9% 9 % APR. They decide to make $150.00 $ 150.00 monthly payments. How many months will it take to pay off the credit card balance?

Question

Layton Murray

Mathematics

11 March, 10:34

The Bennetts spend $10,000.00 $ 10,000.00 on a home improvement project. They make the purchase with a credit card that has a 9% 9 % APR. They decide to make $150.00 $ 150.00 monthly payments. How many months will it take to pay off the credit card balance?

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Answers (1)

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Deborah · Answer 1

It will take 73 months to pay off the credit card balance for the Bennetts.

Step-by-step explanation:

Given that the APR of the loan given to the Bennett family is 9% of $ 10,000, its interest rate would be $ 900, which would give a total payment of $ 10,900.

Now, since the Bennetts want to pay monthly installments of $ 150, it will take them 72.6 months to pay the loan (10,900 / 150 = 72.6), which, rounded to the nearest integer, gives a total of 73 months.