Question

Jackie thinks she can pay off a credit card balance of $12,300 with a current interest rate of

13.45% in 5 years. How much should her minimum payment be?

Answer 1

The minimum payment should she have is $ 6546.035

Explanation:

Given as ;

Amount credit card balance = $12,300

The rate of interest = 13.45 %

The time period is 5 years

Let The principal be P

Now,

Amount = Principal ×
`(1 + (Rate)/(100))^(Time)`

Or , $12,300 = p ×
`(1 + (13.45)/(100))^(5)`

Or, $12,300 = p ×
`(1.1345)^(5)`

∴ p =
`(12,300)/(1.879)`

Or, P = $ 6546.035

Hence The minimum payment should she have is $ 6546.035 Answer