Calculating pay-off time for Credit Card?

[Robert Blass]

The min payment required is $104
The balance on the credit card is $2,890.95
The Annual Interest Rate is 14.99%

I plan of making a regular monthly payment of $150 which is about $46
above the min payment required by the credit card company.

What kind of formula would I use to calculate on which date/year I
would be able to pay-off this credit card?

And how would I put that formula in my Excel spreadsheet?


Also could I make the formula show how the balance is paid Sooner if
you enter a higher monthly payment? Sort of like a chart showing
various payment scenarios??

I'm using XP HOME with OFFICE 97

THANKS!!!

 

[Bernie Deitrick]

Robert,

=NPER(0.1499/12,150,-2890.95,0)

22 full and one little....


Or enter the payment into cell A1 and use

=NPER(0.1499/12,A1,-2890.95,0)


HTH,
Bernie
MS Excel MVP

 

[Barb Reinhardt]

This should help

http://office.microsoft.com/en-us/templates/TC300016541033.aspx?pid=CT101444811033

 

[Bernie Deitrick]

Robert,

And if you want to figure out how much to pay each month to pay it off in a fixed time period:

=PMT(0.1499/12,# Of Months,2890.95)

Like this, to pay off in 24 months:

=PMT(0.1499/12,24,2890.95)

The number will actually be negative, meaning you have to pay....

HTH,
Bernie
MS Excel MVP

 

[Bernie Deitrick]

Robert,

And if you want to figure out how much to pay each month to pay it off in a fixed time period:

=PMT(0.1499/12,# Of Months,2890.95)

Like this, to pay off in 24 months:

=PMT(0.1499/12,24,2890.95)

The number will actually be negative, meaning you have to pay....

HTH,
Bernie
MS Excel MVP

 

[Robert Blass]

gee tanks!

Robert,

=NPER(0.1499/12,150,-2890.95,0)

22 full and one little....


Or enter the payment into cell A1 and use

=NPER(0.1499/12,A1,-2890.95,0)


HTH,
Bernie
MS Excel MVP

 

[Robert Blass]

I FORGOT to add an important detail about the payments.

Although the monthly rate would indeed by 14.99% divided by 12 months,
the credit card company also 'adds' a minimum monthly payment which is
based on 2% of the previous month's balance. These finance charges
seem to be $35-$45 per month. But with some magical formula a recent
min payment for example was $120 then another month was $90, then
$75...doesn't seem to be any rhyme or reason to the calculation of the
minimum monthly payment. I called the company and all they said about
the formula is what I just told you.

God, please someone help me with this issue if possible...??

 

[Bernie Deitrick]

Robert,

2% of $3,000 is about $60, so your $150 payment is well above that threshold, so I wouldn't worry
about meeting that level.

HTH,
Bernie
MS Excel MVP

 

[Robert Blass]

Yes, thanks.


The CC companies are making the formula ambiguous on purpose. The best
way to steal money is to confuse someone enough that they write you a
check every month like clockwork.