Patty took a cash advance of $1,500. her new credit card charges an annual percentage rate of 21%. the transaction fee for the cash advance is 3% of the amount of the advance, with a minimum fee of $35. this fee is added to the total cash advance, and accrues interest. if patty makes monthly payments of $65: how many months will it take patty to pay for the cash advance?

Question

Business

Beckham Campos

24 July, 22:35

Patty took a cash advance of $1,500. her new credit card charges an annual percentage rate of 21%. the transaction fee for the cash advance is 3% of the amount of the advance, with a minimum fee of $35. this fee is added to the total cash advance, and accrues interest. if patty makes monthly payments of $65: how many months will it take patty to pay for the cash advance?

+5

Answers (1)

Know the Answer?

Markus Copeland · Answer 1

Given:

cash advance: 1,500

apr 21%

transaction fee: 3% of the amount

monthly payments: 65

1,500 x 1.03 = 1,545

(21% / 360) * 30 = 1.75% monthly interest

Based on my excel computation, it would take her 31 months to pay off her cash advance.