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Jason has $3,498.95 in credit card debt. The annual interest rate on the unpaid balance is 18.4% compounded monthly. If Jason wants to pay off his credit card debt in 2 years, what is his monthly payment, assuming he makes no additional purchases on this card?

User Trisma
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1 Answer

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Final answer:

To find Jason's monthly payment, we can use the formula for the monthly payment on a loan: Monthly payment = P * r * (1+r)^n / ((1+r)^n - 1), where P is the principal amount, r is the monthly interest rate, and n is the total number of payments. In this case, Jason's monthly payment would be approximately $173.74.

Step-by-step explanation:

To find Jason's monthly payment, we can use the formula for the monthly payment on a loan:

Monthly payment = P * r * (1+r)^n / ((1+r)^n - 1)

where P is the principal amount, r is the monthly interest rate, and n is the total number of payments.

In this case, P = $3,498.95, r = 0.184/12 = 0.015333, and n = 2 * 12 = 24. Plugging in these values into the formula:

Monthly payment = 3498.95 * 0.015333 * (1+0.015333)^24 / ((1+0.015333)^24 - 1) ≈ $173.74

Therefore, Jason's monthly payment to pay off his credit card debt in 2 years would be approximately $173.74.

User HoverHell
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