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A recently married couple ran up a $16,893 credit card balance for wedding expenses. their credit card charges interest with a 13.99% annual percentage rate. what monthly payment is required if the couple wants to pay off this debt with 6 monthly payments over the next 6 months?

User Talg
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Final answer:

The monthly payment for a $16,893 credit card debt at a 13.99% APR to be paid off over 6 months cannot be precisely calculated here but involves using an installment loan formula with the monthly interest rate.

Step-by-step explanation:

The subject in question involves calculating the required monthly payment on a credit card debt of $16,893 with an annual percentage rate (APR) of 13.99%, to be paid off over 6 months. To find the monthly payment, we need to use the formula for the payment on an installment loan, which can be found using a financial calculator or software designed for this purpose.

Unfortunately, without the ability to calculate the precise monthly payment in this format, we must provide a general guide. The couple needs to know the monthly interest rate, which is the annual rate divided by 12. In this case, the monthly interest rate is 13.99% / 12, which equals approximately 1.1658% per month. Then they would use the formula for an installment loan to calculate the actual payment that would amortize the loan over 6 months including interest.

User Vicrion
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