Question

** HELP IM STUCK


Johann owes $9,889 on a credit card with a 23.5% interest rate. What is the monthly payment he should make to pay off this debt in 12 months, assuming he does not charge any more purchases with the card?

$824.08

$932.71

$206.30

$2,524.44

Answer 1

9889-23.5%=9888.765/12= [824.06375] ?

Answer 2

use this calculator

http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx

Answer 3

alternatively, you can use this formula

P = L((r/n)*(1 + r/n)^(n*t))/((1 + r/n)^(n*t) - 1)

where

P = monthly payment
L = total amount loaned
r = annual interest rate (APR)
n = number of times interest is compounded per year (compounding frequency)
t = time in years

Answer 4

I got $932.71

Answer 5

same here

the alternative is to use the formula



Plug in,


L = 9889

r = 0.235 (23.5% = 23.5/100 = 0.235)

n = 12 (interest is compounded monthly)

t = 1


to get


P = L((r/n)*(1 + r/n)^(n*t))/((1 + r/n)^(n*t) - 1)


P = 9889((0.235/12)*(1 + 0.235/12)^(12*1))/((1 + 0.235/12)^(12*1) - 1)


P = 932.708649237424


P = 932.71