How long will it take her to pay off the credit card bill

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Brandi just received her credit card bill, which has an outstanding balance equal to $3,310. After reviewing her financial position, Brandi has concluded that she cannot pay the outstanding balance in full; rather she has to make payments over time to repay the credit card bill. After thinking about it, Brandi decided to cut up her credit card. Now she wants to determine how long it will take to pay off the outstanding balance. The credit card carries an 18 percent interest rate, which is compounded monthly. The minimum payment that Brandi must make each month is $25. Assume that the only charge Brandi incurs from month to month is the interest that must be paid on the remaining outstanding balance. Brandi plans to mail a payment tomorrow. If Brandi pays $150 each month, how long will it take her to pay off the credit card bill?

Reference no: EM131179678

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