Question

Lisa has a credit card that charges 3% interest on a monthly balance. She buys a $200
bike and plans to pay for it by making monthly payments of $100. How many months
will it take her to pay it off? Assume the first payment she makes is charged no
interest because she paid it before the first bill.

Answer 1

It will take her 3 months; first 2 month for the balance of the bike and the $6 interest she would have been charged :)