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HP12c Credit Card Payment Calculation
01-25-2018, 08:29 AM (This post was last modified: 01-25-2018 08:30 AM by Dieter.)
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RE: HP12c Credit Card Payment Calculation
(01-24-2018 08:38 PM)vrenaut74 Wrote:  Assume you had a $2,000 balance on your credit card. No further charges are placed on the card, the minimum payment due every month is 2.7%, and the annual interest rate is 18%. How long would it take to pay off the $2,000 balance if you paid the minimum each month?

I am not sure if I understand this correctly. What does this mean exactly?

So you have $2000 and 2,7% of this is charged, i.e. 2000–54 = $1946 is left after the first month. For this a yearly interest rate of 18% is applied, i.e. 1,5% per month, so $29,19 is added to get $1975,19. Is it like this? Or is the interest added once per year, i.e. after twelve 2,7% charges finally 18% is added to the remaining capital? Please explain.

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RE: HP12c Credit Card Payment Calculation - Dieter - 01-25-2018 08:29 AM

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