Suppose you owe $12,000 on a credit card that carries an APR of 24%. Because the amount of the balance is so high, you choose to stop charging and pay off the card. You decide to make only the
minimum monthly payments,
which is 5% of the balance. Then your balance after t months can be calculated with
B(t) =12000 (1.02 x 0.95)'
How many months will you have to make payments to get the balance below $100?
I have to make payments for [A] months to get the balance below $100.