Figuring out credit card payments
I'm financing my new furnace at 8.9% interest. The furnace itself cost $2,400. If I pay $250 a month, how long will it take to pay off the furnace with the compound interest? Conversely, if I wanted to pay it off in 12 months, what would the monthly payment need to be? Is this what is called amortization???? |
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| Paula:
If you pay $ 250 per month, it will take you roughly ten months at 8.9% to pay off an amount of $2,400. If you take 12 months to pay the same amount and rate, your payment will be $209.77. A good place to run these scenarios is bankrate.com. For this calculation, look under the credit card section. I hope this helps.  |
| Thaks Stephanie! I'll bookmark that site--looks like a lot of good info. |
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