The monthly payment can be calculated from this formula (assume monthly compounding)
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The monthly payment can be calculated from this formula (assume monthly compounding)

[From: ] [author: ] [Date: 12-01-02] [Hit: ]
it would take you ≈ 26.14 years,and the interest youd pay would be ≈$9,112.......
Payment=Amount [ i/12(1+i/12)^12t]
________________
[ (1+i/12)^(12t) - 1 ]

Where:
Amount= Loan Amount
i= Interest rate
t= Time,in years

You made a $5000 purchase on your credit card. The statement suggested a minimum monthly payment of $35.00. If the card carries an interest of 10%:

1. How long does it take to pay off this purchase if you only make the minimum payments?
2. How much in interest would you pay?

-
there is a flaw in the figures you give
the monthly interest on a $5000 purchase will be 5000*0.1/12 = $41.67
if you pay back only $35/month, you can never repay the loan !

if you paid $45/mth instead, it would take you ≈ 26.14 years,
and the interest you'd pay would be ≈ $9,112.91
1
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