OFF CREDIT CARDS On recently received a credit card with an 17% nominal interest

Question

OFF CREDIT CARDS On recently received a credit card with an 17% nominal interest rate, with the card, he purchased an Apple iPhone 5for S400, The minimum, perment on the card is only $20 per mer . If Simon makes the minimum monthly payment and makes no other charges, how many menths willit be before he pays off the card? Do not round intermediate caloulations Round your answer to the nearest month. b. If Simon makes monthly payments of $60, how many months wil t be before he pays off the debt? Do not round intermedate caloulations. Round your answer to the nearest month e. How much more in total payments will Simon make under the $20-a-month plan than under the $60-8-month pian. Do not round intermediate caloulations. Round your answer bo the nearest cen month(s) monts) ck My Work(3 remaining)

Explanation / Answer

I/YR=17/12=1.42% PV =-$400,PMT = -10,FV = 0

20*(1-1.0142x)/0.0142=400

x1=23.74months =24months

B)similarly  for $60 paymnets

x2=7.069months

C) difference in payments =20*x1- 60*x2 = 474.97 - $424.14= $50.8

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