Mathematics
08.02.2022 15:06
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Dave has a credit card balance of $20,000, which carries an APR of 20%. He pays

Dave has a credit card balance of $20,000, which carries an APR of 20%. He pays $400 per month towards retiring the balance. How long will it take Dave to reduce the balance to $0?
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supernova69
supernova69
4,8(81 marks)

The answer to the question is

it will take Dave 108.399 months or 9.03 years to reduce the balance to $0

Step-by-step explanation:

To solve the question, we note that

Balance cresdit = $20,000

APR = 20%

PMT = $400 per month we have

A = P(1+\frac{r}{n} )^{nt} and

A=P\frac{r(1+r)^n}{(1+r)^n-1} where r = 20 %Γ·12

P Β = $20000 and A = 400

Therefore we have400 = 20000\frac{\frac{0.2}{12} (1+\frac{0.2}{12})^n }{(1+\frac{0.2}{12})^n-1}

which gives 6/5=\frac{ (\frac{61}{60})^n }{(\frac{61}{60})^n-1}

= (\frac{61}{60})^n = 6 that is ln (\frac{61}{60})^n = ln (6) or n = \frac{ln(6)}{ln(\frac{61}{60}) } = 108.399 months = 108.399/12 or 9.03 years

gennhill14
gennhill14
4,8(35 marks)
The statement D.is true. An isosceles trapezoid has congruent base angles. An isosceles trapezoid has two parallel sides of different lengths and two inclined sides with the same length an inclination (angle) Then, if you take as base one of the parallel sides, the base angles that they form with the inclined sides (which,I already said, have the same inclination) are congruent.

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