Math Is Fun Forum

Amandabrosset

Guest

Credit Card Balance

What formula do I use to figure out:
What is the total amount that has been paid to the credit card company at the end of the 26th year?

Bob

Administrator

Registered: 2010-06-20

Posts: 10,145

Re: Credit Card Balance

hi Amandabrosset

Welcome to the forum.

In the UK, if you buy something on a credit card you get a monthly statement of what you owe along with a required minimum payment.  Any outstanding balance has interest added at a published monthly rate.  If you pay off the whole debt, then that's it, no more to pay for the next 26 years.  Rates are not the lowest if you intended to extend the balance over that period.  Are you talking about a mortgage ?  The way interest rates are published for this are different in the US from the UK so there are two separate formulas.

It would help if you would post more details.  I'm not asking you to reveal your personal finances but you could make it clearer why you want the 26 years figure and whether there is to be a regular repayment rather than just letting the balance grow.

Have a look at this:

http://www.mathsisfun.com/money/compoun … iodic.html

Bob

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Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob