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Jarius needs to pay down his credit card which he has accrued $21,500 of debt on...

Jarius needs to pay down his credit card which he has accrued $21,500 of debt on at an APR of 19.99%. Calculate his first 5 payments if he plans on paying 4% of his total balance each month.

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Answer #1

Interest for the month = Outstanding principal x 19.99% / 12

Repayment = 4% of 21500 each month.

Therefore the 5 installments will be as shown in the table above = 1218.15, 1203.83, 1189.50, 1175.18, 1160.85

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