Question

Jesse owes $8,473 on a credit card with a 21.5% interest rate. What is the monthly payment he should make to pay off this debt in 12 months, assuming he does not charge any more purchases with the card?

1)

$706.08


2)

$164.57


3)

$790.99


4)

$2,016.54

Answer 1

You can use an online credit card calculator in computing the monthly payment. Refer to the attachment for the answer and graph. The given are the following: balance - 8,473; interest rate - 21.5%; months - 12. The answer is the third option - you'll need to pay $790.99 every month for 12 months.