Question: 13. The present value formula is used when an amount, PV dollars, is borrowed and then repaid through a series of equal payments at equal

13. The present value formula is used when an amount, PV dollars, is borrowed and then repaid through a series of equal payments at equal time intervals, and the compounding period of the interest is equal to the time interval for the payments. The first payment is made after a time equal to the compounding period. The formula is: PV = , where R dollars is the regular payment, i is the interest rate per compounding period, and n is the number of payments. A person has a balance of $854.40 on a credit card. The credit card charges 12% annual interest, compounded monthly. The minimum payment is $20 per month. If the person does not make any more purchases using the card, and pays only the minimum payment each month, how long will it take before the balance is paid off, to the nearest month

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