Answer:
total month taken to repay the due amount is 4 month
Step-by-step explanation:
Given data:
credit account $1367.90
Rate of interest = 9.5%
For each month = 9.5/12 % = 0.00791667/mo.
DUE amount for different months are
At the end of 1 month you owe
1367.90 × 1.00791667 = 1378.73
paying $400 on every month then remaining amount is $978.73
At the end of second month due amount is
978.73 × 1.00791667 = $986.48
paying $400 on every month then remaining amount is $586.48
At the end of 3rd month due amount is
586.48 × 1.00791667 = 591.12
paying $400 on every month then remaining amount is $191.12
At the end of the 4th month due amount is
191.12 × 1.00791667 = 192.63
hence, total amount has paid.
therefore total month taken to repay the due amount is 4 month
