The unpaid balance on a credit account was $7500.00. The annual interest rate is 19%, or 1.58% per month. A $150.00 minimum payment is required. Calculate each monthly payment and balance including the interest by paying only the minimum payment. How long will it take to pay off the entire balance?

To calculate the monthly payment and balance when paying only the minimum payment, we need to consider the interest and the minimum payment requirement.

Given:

- Unpaid balance: $7500.00

- Annual interest rate: 19% or 1.58% per month

- Minimum payment: $150.00

First, let's calculate the interest for the first month. The interest is calculated based on the unpaid balance, so the interest for the first month would be 1.58% of $7500.00, which is $118.50.

Next, we subtract the minimum payment of $150.00 from the unpaid balance of $7500.00, which gives us $7350.00.

Now, let's add the interest of $118.50 to the new balance of $7350.00, which gives us $7468.50. This is the balance after the first month.

For the second month, we repeat the process. The interest for the second month is 1.58% of $7468.50, which is $117.76. Subtracting the minimum payment of $150.00 from the balance of $7468.50 gives us $7318.50. Adding the interest of $117.76 gives us $7436.26, which is the balance after the second month.

We continue this process until the balance reaches zero. Let's calculate how many months it will take to pay off the entire balance.

Starting with an unpaid balance of $7500.00, we subtract $150.00 each month until the balance reaches zero. The total number of months it will take can be calculated by dividing the unpaid balance by the minimum payment:

$7500.00 / $150.00 = 50 months

So therefore, it will take 50 months to pay off the entire balance by making only the minimum payment each month.

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