If you have MS Excel, you can use the NPER formula. In your example, the formula would be =NPER(15%/12,-15,1000). The result is 55.79763
Alternatively you can use the PMT Formula and play with numbers. In this case, =PMT(15%/12,56,1000,0) results in an ending balance of negative $24.94. If you used 55 months, it would still be a positive number.
Or, you could build yourself a table such as column A is months, column B is Payment, Column C is Beginning Balance and Column D is ending balance. Column A increments by 1 to as far as your guess. Column B is constant, at $25. Column C (other than row 1) is =D5*(1+(15%/12)) where D5 changes but is just referring to the row immediately above and one to the right. And, row D is simply Row C minus Row B. This is the long method, but it shows you exactly what will happen for each month. Note that ALL solutions make a big assumption that you pay the Bill on the same day each month. It generally works out the same over the long haul, because you might pay your bill a few days earlier and a few days later than the average day you pay your bill over the life... which will result in just pennies difference.
It will take 55 months to pay off the credit card. That's four years and 7 months.
You have a $1,000 credit card debt, and you plan to pay it off through monthly payments of $25. If you are being charged 15% interest per year, how long (to the nearest 0.5 years) will it take you to repay your debt?
