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?

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

and

where r = 20 %÷12

P  = $20000 and A = 400

Therefore we have

which gives 6/5=

= = 6 that is ln = ln (6) or n = = 108.399 months = 108.399/12 or 9.03 years

what are the statments

step-by-step explanation: