Question

*Advance Algebra With Financial Applications*

Taylor has a credit card with an interest rate of 24.5% compounded monthly that she must pay off in seven years. If her balance on the credit card is $2,345, what must her monthly payment be?

$27.92

$58.61

$222.31

$732.52

Answer 1

where are you stuck @NaCl ?

Answer 2

I got 24.5%/12 = 0.0204166667

Answer 3

@ankit042 http://www.wolframalpha.com/input/?i=M%3D2%2C345%5B%28%280.0204166667%29%281%2B0.0204166667%29%5E%2812*7%29%29%2F%28%281%2B0.0204166667%29%5E%2812*7%29-%281%29%29%5D

Answer 4

you have to use annuity(PMT) with PV =2345. you have figured out other things correctly. I am getting B as the answer

Answer 5

@ankit042 thank you !

Answer 6

np :)