Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / You currently owe $2851 to your credit card that charges an annual interest rate of 22%
You currently owe $2851 to your credit card that charges an annual interest rate of 22%. You make $128 of new charges every month and make a payment of $205 every month. What will the credit card balance be in 3 months?
Computation of Credit Balance in 3 Months using FV Function in Excel:
=fv(rate,nper,pmt,pv,type)
Here,
FV = Credit Balance in 3 months or Future Value = ?
Rate = 22%/12 = 1.83%
Nper = 3 months
PMT = $128-$205 = -$77
PV = -$2,851
Type = 0
Substituting the values in formula:
=fv(1.83%,3,-77,-2851,0)
FV or Future Value = $3,245.65
