Question

You spent $2,588 on Christmas gifts and put the purchases on your credit card. Your credit

card has a 16.84% APR compounded monthly. If you want to pay off your credit card balance

in 15 months, the first payment next month, how big are the monthly payments?

Calculate your answer to two decimal places (e.g. 55.93)

Answer #1

Amount spent on credit card = 2,588

interest charged annually = 16.84%

time taken to pay back all the amount = 15 months

Using the Present value formula of ordinary annuity, we can find the monthly installment amount of this;

PV = {A(1-1/(1+i)^n)}/i

where PV is the present outstanding payment = 2588

n is the number of installments = 15 (as one installment every month)

i is the interest charged compunded monthly = 16.84/12 =1.403%

A is the monthly payment or installment amount

=> A = $192.483

You spent $2,013 on Christmas gifts and put the purchases on
your credit card. Your credit card has a 14.57% APR compounded
monthly. If you want to pay off your credit card balance in 24
months, the first payment next month, how big are the monthly
payments? Calculate your answer to two decimal places (e.g.
55.93)

You charged $4200 on your credit card for holiday gifts. Your
credit card company charges you 8% annual interest, compounded
monthly. If you make the minimum payments of $65 per month, how
long will it take (to the nearest month) to pay off your
balance?

You
charged $1,000 on your credit card for Christmas presents. Your
credit card company charges you 24% annual interest, compounded
monthly. If you make the minimum payments of $25 per month, how
long (in years) will it take to pay off your balance?

Assume you have a balance of 4,800 on your credit card that you
want to pay off. Calculate your monthly payment and total payment
under the given conditions. The credit card APR is 23% and you want
to pay off the balance in 3 years.

.Assume you have a balance of $6,400 on your credit card that
you want to pay off. Calculate your monthly payment and total
payment under the given conditions. Assume you make no additional
charges to the card. 2) The credit card APR is 24 % and you want to
pay off the balance in 3 years.

You have a credit card with a balance of $17,200 and an APR of
19.2 percent compounded monthly. You have been making monthly
payments of $320 per month, but you have received a substantial
raise and will increase your monthly payments to $395 per month.
How many months quicker will you be able to pay off the
account?

assume you have a balance of $3200 on your credit card you want to
pay off. calculate your monthly payment and total payment under the
given conditions. assume uou makw no additional charges to the
card.
the
credit card apr is 19% and you want to pay off the balance in 2
years

You charged $2,000 on your credit card for a trip during Spring
break. Your credit card company charges you 22% annual interest,
compounded monthly. If you make the minimum payments of $50 per
month, how long will it take ( to the nearest month) to pay off
your balance?
Answer choices:
A. 81 months
B. 73 months
C. 70 months
D.79 months

You have a credit card with a
balance of $10,300 and an APR of 16.9 percent compounded monthly.
You have been making monthly payments of $205 per month, but you
have received a substantial raise and will increase your monthly
payments to $255 per month. How many months quicker will you be
able to pay off the account?
23.80 months
27.77 months
25.92 months
9.85 months
24.99 months

#twentyeight
You have a credit card with a balance of $15,700 and an APR of
18.7 percent compounded monthly. You have been making monthly
payments of $295 per month, but you have received a substantial
raise and will increase your monthly payments to $370 per month.
How many months quicker will you be able to pay off the
account?
10.79 months
41.39 months
38.01 months
39.91 months
44.34 months

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