Question

Help?

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

m1 = B(1+r/12) - P
m2 = B(1+r/12)^2 - P(1+r/12) - P
m3 = B(1+r/12)^3 - P(1+r/12)^2 - P(1+r/12) - P

the balance looks to be an exponential deal, while the Payments follow a geometric series

Answer 2

Go on?

Answer 3

since there are 7*12 periods to account for