Question

Crystal owes $8,950 on her Electronics Boutique credit card with a 18.4% interest rate. She owes $6,390 on her Miscellaneous Goods credit cards which has a 22.9% interest rate. What is the total monthly payment needed to pay off both cards in three years, assuming she makes fixed payments and does not charge any more purchases with the card?

a. $572.38

b. $426.11

c. $593.01

d. $557.66

Answer 1

@jim_thompson5910

Answer 2

use this calculator here

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

to find the monthly payment for each card

Answer 3

then add up the monthly payments and tell me what you get

Answer 4

also tell me what you get for the individual monthly payments

Answer 5

ok one second!

Answer 6

ok

Answer 7

wait idk which ones to put in the calculator

Answer 8

you do them one at a time

Answer 9

so at first, you do the Electronics Boutique credit card

Answer 10

which means you put in 8950 in the Loan amount box

you put 3 in the years box

and you put 18.4 in the rate box

Answer 11

then you find the monthly payment, write it down to save it

then redo everything over for the second credit card

Answer 12

for the first one i got 3253.74

Answer 13

that's way too high

Answer 14

this is what I'm getting for the first card

Answer 15

i put a 3 at the end by mistake. i got the same thing the second time haha

Answer 16

that's good

Answer 17

what did you get for the second card

Answer 18

ok one second

Answer 19

247.02?

Answer 20

yep, now add the two monthly payments

Answer 21

572.38 is what i got

Answer 22

me too

Answer 23

om good. so now what?

Answer 24

that's it, that's the answer

Answer 25

they want the combined monthly payment

Answer 26

that's how much it costs per month to have those 2 cards (if you want to pay them off in 3 years)

Answer 27

oh! i see it now im just so tired my common sense is lacking a bit. will you help me with two more?

Answer 28

sure

Answer 29

The table summarizes the credit card debt Yolanda currently holds. Use this table to answer the question that follows.



Which credit card will be paid off last if Yolanda plans on making the minimum payment?

a. Home Improvement Card

b. Wear-It-Right Card

c. Furniture Depot Card

d. Expert Card

Answer 30

hint: look at the number of months column

Answer 31

expert carD?

Answer 32

yep that takes the longest at 154 months

Answer 33

oh that seemed way to easy lol.

Answer 34

lol like you said, you're tired

Answer 35

it's late anyway, so it's ok

Answer 36

i know right lol. well thank you for staying up with me and helping!

Answer 37

sure thing

Answer 38

ok and here is the last one:)

Answer 39

ok one sec while I think

Answer 40

ok

Answer 41

does it mention anywhere about the outstanding balances on any of these cards?

Answer 42

no the picture I sent you was everything

Answer 43

ok it seems like info is missing, because on this page here

http://en.wikipedia.org/wiki/Debt-snowball_method

it says "The debt-snowball method is a debt reduction strategy, whereby one who owes on more than one account pays off the accounts starting with the smallest balances first while paying the minimum on larger debts. Once the smallest debt is paid off, one proceeds to the next slightly larger small debt above that, so on and so forth, gradually proceeding to the larger ones later"



So basically you pay off the smaller balances first, then you move your way up to the larger balances. But how do you know where to start if you don't know the balances?

Answer 44

could it be that this problem refers to a previous problem?

Answer 45

let me checkk

Answer 46

alright

Answer 47

no its a totally different problem

Answer 48

well unfortunately I think there's still missing info, but I think what they mean by snowball method is that you focus all your energy on paying off the largest interest card, then once that's paid off you focus on the next largest until all cards are paid off

Answer 49

I think the monthly payments will be large at first because you'll be focusing on a card with the largest interest rate

however once that card paid off, the payments will go down because the interest rates will go down

Answer 50

I don't know if there's anything more to say because I don't know anything about the balances or how much you have available to pay per month

Answer 51

thats okay! thank you for helping me !

Answer 52

np