HP12c Credit Card Payment Calculation

01252018, 04:42 PM
Post: #10




RE: HP12c Credit Card Payment Calculation
(01242018 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? … and was just wondering if this wasn't something the HP12c is capable of… As a single calculation, no: as a series of calculations, yes. However, the question is, perhaps, better addressed as a Calculus rather than a Business expression. The question posed seems more academic than practical in so far as the declining minimum payment is (or should be) marginally acceptable or palatable to the debt holder. Is a one cent payment reasonable? The attached table/graph facilitates this perspective. [attachment=5593] This demonstration make some simplifying assumptions but illustrates a valid perspective. Hope this helps. BEST! SlideRule 

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