Fan & Medal.
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

Question

Fan & Medal.
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

mathmale · Answer

How have you calculated monthly payments in the past?  Please review the formulas available to you.  Which one would be most appropriate when your goal is to reduce a debt to zero through monthly payments?

leozap1 · Answer

It doesn't give me a formula. Do you know a formula I could use to try and solve the problem?

anonymous · Answer

What about using I=P*r*t formula?

mathmale · Answer

That formula is useful for considerably simpler problems, but not for the one you have in front of you.  From where did you get this problem?  If from a book, or from online materials, I'd certainly think that the various financial formulas necessary would be at least listed.

leozap1 · Answer

It's from an online course I'm taking. It's a practice question, so I don't have to get it right I'd just like to know how to solve it. When I tried I got that she should pay a total of $742.14 a month.

leozap1 · Answer

Nvm, I figured it out. The answer is $572.38.