timtp Chapter 5 Qutz 5ave Exit Subm Quesnon 18 of 25 18 has

tim.tp Chapter 5 Qutz 5ave &Exit; Subm Quesnon 18 (of 25) 18 has missed several payments and now the annual interest rate on the card is 18 95 percenet If he pays $175 per morith an the card,in total, how mach inter Due to poor spending habits, Ricky has accumuloted expense does Ricky pay to the credih card company? $10,000 in credit card debt. He has missed several payments and now 515,987 5o O $17.008.52 O S12.905 13 O $8,714 62

Solution

We need to use excel\'s NPER function to solve this and calculate the number of periods NPER( rate, pmt, pv, [fv], [type] ) PV= present value , FV= future value periods calculation 148.5 NPER(0.1895/12,-175,10000,0,0) periods*175 = total amount paid = 148.5*175 = 25987.5 To get the amount of interest deduct principle (10000) from total = 25987.5 -10000 = 15987.5 Answer 15987.5