Carolyn owes $9,620 on a credit card with 16.4% interest rate. She owes $3,970 on another credit card that has a 24.6% interest rate. What is the total monthly payment needed to pay off both cards in 3 months, assuming she makes fixed payments and does not make anymore charges to her cards?

Question

ranga · Answer

$$\Large M = \frac{ P(1 + r)^nr }{ (1 + r)^n - 1 }$$
M is Monthly payment
P is the amount borrowed
r is interest rate per month (in decimals)
n is the number of months of the loan

ranga · Answer

For the first credit card, P = 9620;  r = 0.164/12;  n = 3.  Calculate M.
Do similar calculations for the second credit card.
Add the two monthly payments to get the total monthly payment.

anonymous · Answer

Okay, I did it. I got the answer! Thank you so much!

ranga · Answer

you are welcome.