You have 3000 on a credit card that charges a 14 interest ra

You have $3,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don\'t charge anything new to the card)?

Solution

annuity payment = [r(PV) / {1 - (1 + r)^-n}]

= [(0.14/12)$3,000 / {1 - (1 + 0.14/12)^-(5*12)}]

= $35 / 0.5014 = $69.8048