Assume that you have a balance of $4000 on your credit card and that you make no more charges. If your APR is 23.9% and each month you make only the minimum payment of 5% of your balance, then when is the first time that the balance would be less than $100?

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The balance will be less than $100 after 117 monthly payments.The minimum payment is 5% of the balance, or $200. The interest charged each month is $4000 * 0.239 / 12 = $83.17. The amount of the balance that is paid off each month is $200 - $83.17 = $116.83. After 117 months, the balance will be $4000 - $116.83 * 117 = $99.99.

Assume That You Have a Balance of $4000 on Your