You have a credit card with a balance of $754.43 at a 13.6% APR. You have $300.00 available each month to save or pay down your debts. a. How many months will it take to pay off the credit card if you only put half of the available money toward the credit card each month and make the payments at the beginning of the month?

b. How many months will it take to pay off the credit card if you put all of the available money toward the credit card each month and make the payments at the beginning of the month?

Step-by-step explanation:

No need for complicated formulas if you only need the number of months/payments.

Ignore the APR as it won't make such a great amount to add a month payment within short period up to 6 months.

a.

You are paying at the beginning of the month.

After the first payment you have a balance:

This amount will be paid off after 5 months as:

So total number of months/payments is 6

b.

Similarly to above, after the first payment the balance is:

This amount will be paid off after 2 months as:

Total number of months/payments is 3.

A 6

B 3

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