Question

Flores charges $530 for car repairs to his credit card, which charges no interest if paid in full within 9 months. He pays $150 the first month. How much must he pay each month for the next 8 months so that he pays no interest?

a) $47.50
b) $58.89
c) $66.25
d) $380.00

Answer 1

Flores must pay $47.50 each month for the next 8 months to pay off his credit card debt of $530 without incurring interest after his initial payment of $150.

Step-by-step explanation:

To determine how much Flores must pay each month for the next 8 months to avoid interest on his credit card repair bill, we can use simple arithmetic to divide the remaining balance by the number of months left. Flores initially charged $530 for car repairs and paid $150 in the first month, leaving a balance of $380 ($530 - $150). To pay off the balance within the 8 months, we divide $380 by 8 to find the equal monthly payments.

$380 ÷ 8 = $47.50

Thus, the monthly payment Flores must make for the next 8 months to pay off his credit card without incurring interest is $47.50.