Javier owes $4,289 on a credit card with a 17.5% 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?

Question

anonymous · Answer

Just an explanation on how to find the answer will be appreciated as well, thanks! :)

tkhunny · Answer

There are nice technical ways.  Maybe a spreadsheet?  It's not clear what level of response is needed.  I have to go.  Just thought I'd prod you a little for more information.

anonymous · Answer

$71.43 

 $357.42 

 $392.20 

 $877.24

ankit042 · Answer

you have access to excel?

anonymous · Answer

not quite sure what "excel" is?

ankit042 · Answer

Excel is a software(Microsoft) for doing calculations never mind. Have you heard about annuity?

anonymous · Answer

Oh, Microsoft excel ?! Yes I have it on my comp.

ankit042 · Answer

hmm K great.. you need to find PMT value. Use the formula 
But do you understand the concept of annuity?

anonymous · Answer

yes I understand annuity. And I do have a formula that was provided but I'm not sure how to apply it to this particular question...

tkhunny · Answer

b = 4289
i = 0.175/n
n = 12
t = 1