Question

Please, PLEASE help!

Linda owes $3,861 on a credit card with a 22.3% interest rate compounded monthly. What is the monthly payment she should make in order to pay off this debt in 2 years, assuming she does not charge any more purchases with the card?

I am not sure which formula to use ):

Answer 1

Here are the answer choices:

$160.88

$200.87

$361.93

$867.93

Answer 2

P(1+r)^x
where x is time

Answer 3

Thank you! Can you stay a bit to check my answer?

Answer 4

I tried pluging the numbers in and it gave me a big number, trying to see where I went wrong.

Answer 5

Okay. I honestly don't remember this formula though

Answer 6

No wrong formula, its um:
interest = 0.223 annual interest rate.
time = 0.223/12 = 0.0185833... monthly rate.
rate = 1+j = 1.0185833

Answer 7

Now that I am reading it over again, would I used the monthly payments formula?

Answer 8

Yes

Answer 9

do you understand the process used?

Answer 10

Yes, I do. Hold on and I'll show you what I ended up with

Answer 11

Here: 3861^(24)(1-k)/(1-k^(24)), k=1+.223/12

Answer 12

What is k? I am so lost ):

Answer 13

I just used k, i.e: K = 1 + R/ 12

Answer 14

Oh okay. I just don't recognize the formula. I thought the monthly payments formula was M=B [ i (1+ i)^nt/ (1 + i)^nt - 1)]

Answer 15

Yes, the PMT formula :D

Answer 16

is that what you have trying to tell me? haha

Answer 17

Yes, now can you solve? I can't do it for you, I've already been given a warning for doing so..

Answer 18

Yes, and this is what I got: 0.0520264224085132

Answer 19

It's nothing close to any of the answer choices :l

Answer 20

Do I have to do something with the 3,861 with the answer I got above?

Answer 21

0.0520264224085132 * 3861 = 200.8740169192694652

*cough* get it?

Answer 22

OH! Okay! I always mess that last step up! I kept adding it! lol

Answer 23

Thank you very much!

Answer 24

Yw, what grade are you in?

Answer 25

12 grade

Answer 26

9th. Learning Algebra II on the side. Sorry for confusing you at some point

Answer 27

This is Advanced Algebra with Financial Applications. I'd say you're doing pretty well for a freshmen haha Wish I could understand math like that lol

Answer 28

I should've skipped a grade when I had the chance, I'd be a junior :/

Answer 29

I may need more help...mind if I ask for your help again if needed? and I didn't know you could still skip a grade

Answer 30

Um I'm kinda doing hw on the side too lol xD

Answer 31

Make a new question and tag a mod or ambi and they'll help you :p GL!!

Answer 32

I'm sorry! I didn't know lol That's okay, I'm sure I can find some else. (: Good luck with that homework!

Answer 33

Yw, make new post, this is laggy af. Earth Science mixed with physics smh

Answer 34

okay lol